Indian Wells City Council
July 6, 2023

• Contribute to the community by supporting local charities and non-profit organizations.

3. Festival Components

3.1 Sponsorship Section: Indian Wells Winterfest will offer various sponsorship opportunities for businesses and organizations. Sponsors can benefit from brand exposure, increased visibility, and association with a highly regarded community event.

Sponsorship packages may include naming rights, logo placement on marketing materials, stage announcements, and other promotional activities.

3.2 Events and Activities To create an engaging and diverse festival experience, Indian Wells Winterfest will feature the following events and activities:

3.2.1 Live Music Performances: Live music concerts located in proximity to the roller rink as well as the bubble bar. These performances will cater to a wide range of musical tastes and provide a platform for local artists.

3.2.2 Kickoff event: December 1St opening night kickoff party to showcase the new Winterfest. This event will be invite only, and tickets will only be given out to sponsors, Community officials, and VIP's.

3.2.3 Tree Lighting Ceremony: December 2nd a dedicated tree lighting ceremony will take place the night after the kickoff party to open Winterfest to the general public, and generate local media attention.

3.2.4 Roller Disco Rink: A brand new temporary roller disco rink will be installed, allowing visitors to enjoy the thrill of roller skating. This new roller rink will be larger than last year's ice rink and comes in at 86ft x 40ft for a combined square footage of 3,440ft, and will be much more impactful. Skating sessions will be available for both youth and adult skaters, creating a delightful experience for families and friends. All themed to a mix of disco and classic holiday tunes.

INDIAN WELLS WINTERFEST - DECEMBER 2023

3.2.5 Shots in the Night: Special holiday themed Shots in the Night will be offered all month long. These nights will showcase holiday films, music, snacks and drinks.

3.2.6 Igloo Bubble Bar Installation: A special popup inflatable light up igloo bar will be showcased on the clubhouse putting green. This will serve as an entertainment hub as well, and will showcase various games for people to play such as cornhole, giant Jenga, and connect four. The bar itself will showcase various holiday themed craft cocktails, wines, and local craft beers.

3.2.6 Outdoor Snow Globes and Firepits: Four snow globes will be placed throughout the property and will be available to rent out for a $200 food and beverage minimum.

These snow globes will feature seating for six and will have blankets, lights, and dedicated speakers to allow for a true VIP experience. In the same area as the snow globes there will also be four firepits available to rent for a $100 food and beverage minimum and will allow for seating for four. Both of these offerings will be allowed to utilize bottle service and will have a dedicated waitstaff.

3.2.7 Holiday Cookie and Candy Truck: The IW food truck will be decorated and retrofitted only at night in order to sell various candy and holiday snacks. The food truck will be parked in the valet area and will allow for an immediate walk-up experience to grab a welcoming hot chocolate or caramel apple.

3.2.8 Photos with Santa: Winterfest this year will feature a dedicated Santa site to allow for family's and groups to take photos and memories home with them.

3.2.9 Various Food and Drink Popups: This year we will be showcasing various station throughout the property to purchase various uniquely themed snacks, meals, and warm drinks. All alcoholic drinks however will be served out of the bubble bar.

4. Marketing and Promotion

4.1 Target Market: The target audience for Indian Wells Winterfest includes local residents, neighboring communities, and tourists seeking unique winter holiday INDIAN WELLS WINTERFEST - DECEMBER 2023

experiences. The festival aims to cater to families, young adults, and seniors alike, creating a welcoming and inclusive atmosphere for all.

4.2 Marketing Strategies
• Multi -channel marketing campaigns will be launched, including social media advertising, local print media, radio spots, and possibly an outdoor billboard. • Collaborations with tourism boards, travel agencies, and hotels to promote the festival to tourists.
• Engage with local schools, community centers, and religious organizations to encourage participation and attendance from the local community. • Leverage influencer marketing by partnering with popular local bloggers and social media personalities to promote the festival.

5. Operational Plan

5.1 Festival Venue: The IW Golf Resort features ample space to accommodate the various festival components, including stages, market stalls, food vendors, and the roller disco rink. Ensuring easy accessibility, parking facilities, and appropriate amenities for attendees.

5.2 Vendor and Participant Management: Establish a selection process for vendors and participants to ensure the festival offers high -quality products and services. Provide clear guidelines, contracts, and logistical support to vendors, performers, and volunteers.

5.3 Staffing Recruit: a competent team of event managers, volunteers, security personnel, and support staff to oversee the smooth functioning of the festival. Assign specific roles and responsibilities to each team member and provide adequate training as required.

INDIAN WELLS WINTERFEST - DECEMBER 2023

6. Financial Projections

6.1 Revenue Streams
• Sponsorships: Secure partnerships with local businesses and organizations to generate sponsorships.
• Ticket Sales: Charge an admission fee for entry to specific festival areas and activities.
• Vendor Fees: Collect fees from vendors participating in the marketplace and food stalls.
• Merchandise Sales: Offer festival -branded merchandise and souvenirs for sale. • Fundraising: Organize charity events and initiatives to raise funds for local causes.

6.2 Expenses
• Venue setup costs
• Marketing and advertising expenses
• Performer fees and contracts
• Staff wages and volunteer support
• Insurance and permits
INDIAN WELLS WINTERFEST - DECEMBER 2023

• Operational and logistical expenses
• Safety and security measures
• Miscellaneous expenses

6.3 Initial $100,000 expense budget
• The initial $100,000 budget will go towards covering the costs of the 50% deposit on the new roller rink needed to move forward. Cost: $92,378 • An additional early purchase of the Igloo bar in order to receive a 30% discount as well as allow the IW golf resort to practice setting up the igloo and utilize it for additional functions between August 1st and December 1St. Cost: $2130 • Purchasing of one bubble tent to allow the team to practice assembling and disassembling as well as use for marketing material. Cost: $918.87 • Purchase of one seating set of four. To be placed inside the bubble tent in order to display for marketing material, as well as verify quality of seating set. Cost:
$337.80
• Purchase of one fire pit. To be used for display purposes for marketing as well as verifying quality of product. Cost: $344.43
• Purchase of one set of Govee string lights for inside of bubble tent. To be used for display purposes for marketing as well as verifying quality of product. Cost:
$217.99
• Purchase of one set of Sonos speakers for inside of bubble tent. To be used for display purposes for marketing as well as verifying quality of product. Cost:
$824.04
INDIAN WELLS WINTERFEST - DECEMBER 2023

• Miscellaneous decorations, advertising and marketing material. To be purchased to help enhance the set up as well as allow the team to photograph and advertise early in order to promote sponsorships. Cost $2,848.87

7. Conclusion
Indian Wells Winterfest aims to create a vibrant and memorable winter festival experience for residents and visitors. By leveraging sponsorships, organizing diverse events and activities, and engaging the community, the festival will contribute to the local economy and promote a sense of holiday cheer. Through effective marketing strategies, careful planning, and diligent execution, Indian Wells Winterfest will establish itself as a beloved annual tradition in the region, fostering joy and unity during the winter season.

INDIAN WELLS WINTERFEST - DECEMBER 2023

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ERCIMIEM
Indian Wells
3

William Cooper, Winterfest Producer and Project Manager, City of Indian Wells, Cell: (760)-409-4122, Email: [email protected]
[Prospective Sponsor's Name] [Prospective Sponsor's Organization] [Address] [City, State, ZIP]
Subject: Sponsorship Opportunity for Indian Wells Winterfest Dear [Prospective Sponsor's Name],
I hope this letter finds you well. I am writing to introduce you to an exciting opportunity to support and collaborate with Indian Wells Winterfest, an eagerly awaited holiday festival that will be taking place from December 1st to January 4th in Indian Wells, California.

Indian Wells Winterfest is a community -driven event that aims to bring together residents and visitors to celebrate the joyous holiday season. Our festival promises a variety of family -friendly activities and attractions, creating a magical atmosphere for all attendees. As a highly regarded organization like [Prospective Sponsor's Organization], we believe that your partnership with Indian Wells Winterfest would be mutually beneficial.

By becoming a sponsor of Indian Wells Winterfest, [Prospective Sponsor's Organization] will gain significant visibility and exposure among a diverse audience, including local residents, tourists, and media outlets. Additionally, your sponsorship will align your brand with the festive spirit of the holiday season and demonstrate your commitment to supporting community events. Below, you will find a detailed breakdown of the sponsorship opportunities available:

1. Platinum Presents Sponsor ($10,000+):
• Prominent logo placement on all event marketing materials • Recognition as one of the exclusive Platinum Sponsor in press releases and media coverage
• Two reserved front row tables of eight at the VIP kickoff party • Dedicated wall branding either near the roller disco rink or in other prominent points of entry
• Social media mentions and promotional posts highlighting your brand • Access to close off Winterfest one night only for a personal holiday party with all access
• Acknowledgment during VIP kickoff party, and during public tree lighting ceremony.
• Dedicated VIP seating for sixteen at all Winterfest events

2. Golden Lights Sponsor ($5,000+):

INDIAN WELLS WINTERFEST - DECEMBER 2023

• Logo placement on event marketing materials
• Recognition as a Gold Sponsor in online, press releases and media coverage • Reserved table for eight at VIP kickoff party
• Social media mentions and promotional posts highlighting your brand • Advertising signage attached to one of the bays at Shots in the Night • Priority access to your sponsored golf bay at Shots in the Night • Access the ability to plan company outings and events at Winterfest • Dedicated VIP seating for eight at all Winterfest events

3. Silver Snowflakes Sponsor ($2,500+):
• Logo placement on event marketing materials
• Recognition as a Silver Snowflakes Sponsor online and media coverage • Dedicated one meter board advertising on the roller disco rink • Three VIP access tickets to opening night kickoff party • Dedicated VIP seating for three at all Winterfest events

4. Bronze Bells Sponsor ($500+):
• Logo placement on event marketing materials
• Recognition as a Bronze Bells Sponsor online and media coverage • Two VIP access tickets to opening night kickoff party Please note that the sponsorship packages mentioned above are flexible, and we are open to discussing customization based on your organization's specific goals and budget.

In addition to the aforementioned benefits, we are committed to providing our sponsors with ongoing recognition and appreciation throughout the festival. This includes logo placement on our festival website, onsite logo placements and branding throughout, mentions in our newsletters, and acknowledgment during stage announcements.

We are eager to discuss the potential partnership further and answer any questions you may have. I will follow up with you shortly to explore how [Prospective Sponsor's Organization] can benefit from supporting Indian Wells Winterfest. In the meantime, please feel free to contact me at (760)- 409-4122 or IWwinterfest.com.

Thank you for considering this partnership opportunity. We look forward to working with you to make Indian Wells Winterfest a resounding success and a memorable experience for all.

Warm regards,
William Cooper, Producer and Project Manager, Indian Wells Winterfest INDIAN WELLS WINTERFEST - DECEMBER 2023

ATTACHMENT #2
Roller Rink
Ice Rink
Expense
Budget
Revenue
Budget
Roller Rink
$ 184,756
VisitGPS Grant
$ 100,000
Rink Setup Rooms
$ 12,000
Sponsorships
$ 200,000
Igloo Bar
$ 2,130
F&B Revenue
$ 50,000
Four Bubble Tents
$ 3,672
Four seating sets
$ 1,348
Four Fire Pits
$ 1,380
Lighting for Tents
$ 872
Speakers for Tents
$ 3,300
Entertainment
$ 9,600
Staffing
$ 20,000
Overall Lighting
$ 125,000
Consultant
$ 30,000
Security
$ 15,000
Contingency
$ 15,000
Total:
$ 424,058
Total:
$ 350,000
$ (74,058.00)
Expense
Budget
Revenue
Budget
Ice Rink
$ 279,918
Total:
$ 519,220
Total:
$ 350,000
$ (169,220)
*Note: This does not include TOT or Sales Tax revenue
Some staffing and Misc. Equipment will be inkind from Hotels.

INDIAN WELLS CITY COUNCIL
July 6, 2023
To: City Council
From: City Manager Department
Prepared by: Peter Castro, Deputy City Manager
Subject: Continued Discussion on Naming the Future Park at Eldorado and Fairway Drive

RECOMMENDED
ACTIONS:

Council DISCUSSES potential names for the park at the northwest corner of Eldorado and Fairway Drive; and
PROVIDES direction to staff.

DISCUSSION:

At the March 2, 2023, City Council meeting, the Council approved the design for the development of the new park at the corner of Eldorado and Fairway Drive.

As the final design is being completed, Council needs to determine a name for the park to be included into the design. The naming of a park is complex as the assigned name is a permanent identity of this public place. There are many options to consider when naming a park such as:
• A distinct geographic, historic, environmental, physical element, or developmental feature
• The streets adjacent to the park
• A local neighborhood or community
• A commemorative event
The Council discussed potential names at the June 1, 2023, City Council meeting. During that meeting, the Council directed staff to collect public input and present community members suggested names at the next City Council meeting. As of June 26, 2023, Staff received 275 suggestions for the name of the park. Many community members suggested more than one name. Many suggested names were very similar, e.g., Eisenhower Park and Eisenhower Memorial Park.

The top -five names suggested were:

1. Eldorado Park (17 votes)

2. Paradise Park (14 votes)

3. Fairway Park (12 votes)

4. Eisenhower Park (7 votes)

5. Serenity Park (6 votes)
The full list of suggested names is attached to this staff report (Attachment No. 1).

Staff is seeking Council discussion on the naming of the park or direction on how to best proceed with the naming of the park over the next 30-60 days.

OPTIONS:

1. Staff recommends the City Council discuss potential names for the park at the northwest corner of Eldorado and Fairway Drive; or

2. Provide alternative directions.

FISCAL IMPACT:

There is no fiscal impact with this action.

Public Comment: Item I.3
7/6/2023
From:

To:

Cc:

Subject:

Date:

Donna Griffith; Greg Sanders; Dana Reed; Ty Peabody; Bruce Whitman Angelica Avila; Chris Freeland
Park Naming at Fairway - my thoughts
Sunday, June 4, 2023 9:19:45 AM
CAUTION: This email originated outside our organization. Be cautious with any links or attachments.

Greetings Indian Wells City Council members,
I'm sharing my thoughts about the naming of our new community park at Fairway and El Dorado.

Paradise Park: promotes our Indian Wells branded lifestyle for residents and visitors.

Fairway Park: promotes the street the park fronts as well as plays on the golf community we enjoy.

It's also a way finder for the park's locale.

Heritage Park: promotes the idea that there is a heritage to Indian Wells (which isn't always top of mind). Inclusive of Native American history, city name history, water well history, architectural history, famous persons history, etc. Adding snips of historic information on monuments or a kiosk offers a way for park visitors to learn about the city. In years ahead, this Heritage Park name lives on with current and future remembrances - history evolves in the park.

I prefer not to name this park after a person.

While I appreciate the idea of honoring the late former President Eisenhower (as suggested at the June 1st council meeting), I think we have already done so in the many ways we see and say his name in our city and valley almost daily.

City of Indian Wells Eisenhower Walk of Honor & Veterans Memorial (a passive park outside of city hall)
https://www.cityofindianwells.org/our-city/about/community/eisenhower-walk-of-honor-and- veterans-memorial
Eisenhower Mountain and Eisenhower Mountain Nature Trail Eisenhower Mountain Historical Marker (hmdb.org)
Eisenhower Health, hospital, medical centers
Eisenhower Health
Eisenhower Community Education Center in our Desert Sands Unified School District Home - Eisenhower Community Education Center (dsusd.us) Note — I ran these names past my husband and a few others, and so far all have liked Heritage Park best!
Thank you for your service,
M Ma,c.w-e L,
Former elected WA State Representative, former WA Governor's Senior Policy Advisor, former elected School Board Director, small business owner

Public Comment: Item I.3
7/6/2023
From: Donna Griffith
To:

Cc: Chris Freeland; Angelica Avila
Subject: Re: Naming the New Park on Fairway
Date: Monday, June 5, 2023 12:27:31 PM
Attach m ents: Outlook-2ibemgwb
Thank you, Susan. I too really like the name Heritage Park. I think it fits perfectly. I will pass on your email to our City Manager and City Clerk for addition to the record.

INDIAN WELLS

CALIFORNIA
Donna Griffith
Mayor
44-950 Eldorado Drive
Indian, Wells, California 92210-7497
w IndianWells.com
[email protected]
V (760) 346-2489
From: Susan Waterfall
Sent: Sunday, June 4, 2023 2:13 PM
To: Donna Griffith ; Bruce Whitman (home)
; Greg Sanders ; Dana Reed
; Ty Peabody
Subject: Naming the New Park on Fairway
CAUTION: This email originated outside our organization. Be cautious with any links or attachments.

Hi everyone! I'd like to add my two cents to the deliberations regarding a name for our new park. I really like "Heritage Park" with its invitation to contemplate the ongoing history of our unique community. It's a wonderful name!
Thanks for the work all of you are doing.

Susan Waterfall

INDIAN WELLS CITY COUNCIL
July 6, 2023
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Fiscal Year 2023-24 Golf Resort Operating Budget and Capital Improvement Plan
RECOMMENDED ACTIONS:

Council REVIEWS, DISCUSSES, and APPROVES or APPROVES AS AMENDED the Golf Resort Operating Budget and Capital Improvement Plan from July 1, 2023, through June 30, 2024.

BACKGROUND:

The City Council met in June 2023 to review and discuss the Golf Resort's operating and capital budgets. Staff presented the new budget, which included the Council's new deliverables and financial goals, public versions of the business and marketing plans, and new capital spending. The Golf Resort's General Manager discussed the upcoming year's operating strategies, emphasizing efforts to attract residents to the VUE restaurant by developing new theme nights and creating a fresh menu.

During the meeting, the Council asked for three items from staff; (1) associated documents detailing monthly operations, (2) additional time to review the new budget book, and (3) set up one-on-one meetings with the Golf Resort's General Manager to discuss strategic or confidential plans. On June 14, 2023, staff provided the associated documents to the City Council as requested.

In addition, the City Council instructed Golf Resort to bring back a strategy to offer and promote a summer golf camp for 2023 and invest in employee training.

Summer golf camp is a three-day camp where juniors will work on fundamentals such as grip posture and alignment. Qualified instructors, such as Jordan Hamblin, a third - generation golf professional with over 10,000 hours of experienced coaching, teach skills such as putting, chipping, and ball striking. Games, competitions for prizes, and lunch are a part of the three-day program. Classes begin on Monday, July 10, 2023.

The Golf Resort is proposing a training position be added to the proposed budget that will be responsible for mandatory employee training (e.g., harassment,

alcohol service, etc.) to address customer comments (e.g., service, quality of product, presentation) in all golf resort aspects. It is recommended that this position be funded, but the next General Manager evaluates the decision to hire.

The Council requested Staff to add the Golf Resort's operating and capital budgets for reconsideration on the July 2023 agenda.

Budget Overview
The Golf Resort budget, as submitted, includes $19.6 million (net of Golf Subsidy) in operating revenues and $18.6 million in operating expenditure. Capital replacements total $950,498. The after -capital net operating profit at the Golf Resort is projected at $53,593. Appropriations for operational costs are balanced in relation to projected revenue sources and do not rely on one-time revenue sources or reserves.

Indian Wells Golf Resort
Consolidated Budget Summary
Fiscal Year
2023-24
Budget
Rounds
76,507
Covers
237,728
Total Revenues (Net of Golf Subsidy)
19,613,644
Cost of Sales
3,177,065
Payroll
9,858,197
Operating Expenses
5,574,291
Total Operating
18,609,553
Net Operating Income before Capital
1,004,091
Capital Replacements
950,498
Net Operating Income After Capital
53,593
The proposed budget shows a Net Operating Income after capital with a profit of $53,593.

This is the first time the Golf Resort budget has projected a profit in operations after capital without the resident golf subsidy. Based on the proposed budget, the golf subsidy will be utilized to repay loans from the City's General Fund to the golf resort. Over the past two years, over $5.5 million in loans have been repaid to the City, with an additional

$2.7 million projected to be repaid in FY 2023-24, leaving a projected loan balance of $700,000.

Capital Budget Overview
The capital improvement plan includes sixteen projects budgeted for $950,498.

Capital Category Total Percentage
Buildings And Structures 29,300 3.1%
Clubhouse Equipment 20,000 2.1%
Golf Course Equipment 658,419 69.3%
Signage and Wayfinding 133,800 14.1%
Emergency 108,979 11.5%
Total Capital Replacements
950,498 100.0%
A complete listing of the various capital projects can be found on page 51 of the Golf Resort Budget Book (Attachment 2).

The Timing and Funding of Golf Maintenance Equipment Replacements Staff would like to bring your attention to an important matter regarding the lead time required for ordering golf maintenance equipment. There is an 18 -month lead time for all equipment orders, and we would like to clarify the reasons behind this change and provide guidance on planning future purchases.

Due to a significant surge in demand for golf maintenance equipment across the industry and ongoing global supply chain challenges, manufacturers need help meeting the rising order volumes. This situation has resulted in extended lead times as manufacturers work diligently to fulfill orders.

Troon staff has identified critical equipment needs and prioritized those items to ensure the Golf Resort has the necessary machinery for uninterrupted golf course maintenance.

Troon staff has maintained a proactive approach to forecasting and budgeting by assessing equipment needs and replacement schedules well in advance.

Capital funding is now subject to the timing of equipment arrival rather than predictable annual budget cycles and may result in increases or decreases in the annual budget during the next 18 -month cycle. Staff has prepared the FY 2024-25 maintenance equipment replacement budget, which is similar in price and amount of equipment requiring replacement during FY 2023-24. Due to the abovementioned timing issues, staff will place orders for all equipment requiring replacement listed in the two-year cycle.

Equipment received during FY 2023-24 will be capitalized in FY 2023-24, and equipment delayed until FY 2024-25 will be capitalized in FY 2024-25.

ATTACHMENTS:

1. Resolution

2. Golf Resort Budget Book

3. Original June 1, 2023, Budget Staff Report

4. Golf Resort Implementation Goals and Deliverables

To: Chris Freeland, City Council
From: Ty Peabody
Date: June 29, 2023
RE: IWGR Budget
City Council Meeting
July 6, 2023
I want to thank Donna and Greg for their support to acquire additional pertinent information regarding the IWGR budget for 2023/24. As you will see, the information requested. was necessary and proper to evaluate the following:
• Is the budget for July — September truly a worse case scenario achieving a significant reduction in losses during a period of time that the IWGR experiences significant losses each year?
• Is the G&A, as presented, appropriate for the Golf Resort and are any changes to the G&A properly documented?
• Is there a proper ROI on each business segment at the IWGR o Hitting Bays
o Golf Academy
o Top Tracer
o Shots in the Night
o Ice Cream Truck
o Food Truck
• Is the allocated payroll properly presented?
• Does the proposed local marketing plan meet the Council's objectives of increasing revenues and profits?
• Are the capital expenses as represented necessary?
• Does each segment of the IWGR P&Ls meet the net operating goals by department? Without this requested information, it is impossible for the Council or City to understand any issues related to the proposed budget or for the City or City Council to=make the proper suggestions or recommendations for changes to the budget. Instead of worrying about whether it takes two hours or more to gather this requested information, the Council should be more concerned about the answers to the requests.

Once a year we review the IWGR budget and'I would think all Council members should be willing to dig into the issues related to the budget to be sure the City and Council are getting the proper results. As Council members, we have a fiduciary obligation to challenge and question the budget as presented and from that develop a budget that meets the goals and strategies as determined by the City Council and City.

From what I have received from the IWGR per my requests, there are glaring issues that should have been addressed in the past and now. Ignoring these issues will only make things worse, but dealing with them now can only make the next year more successful..

Here is what Kevin and I found:

Worse Case Scenario
This budget failed to accomplish the worse case scenario for the period July — September. As requested by the Council, looking at the net operating loss, it is obvious that there was no real attempt to reduce costs and reduce the operating loss vs. last year. The operating loss as presented shows an improvement of only $9,133, or a budgeted loss for the period of $1,936,933 vs. last year's of an actual loss of $1,950,933.

Based on past history, if the IWGR really implemented a worse case scenario, the loss should have been reduced by a minimum of $200,000 (see attached).

General and Administration Budget (see attached)
The budget for the department raises serious questions or issues that should have been discussed in detail with the Council. The budget, as presented, shows an increase in payroll of $170,612, or a 12% increase over the previous year. The IWGR is, or has, added additional staff that is in some instances a duplication of jobs:
• Inventory Supervisor —typically this type of business this job would be done by the restaurant director, chef and GM —cost $84,000 plus benefits. • Learning and Development Manager — presently we already have a Human Resources person and typically this job would be their responsibility of the GM or department heads. The IWGR cannot afford this type of luxury. The new GM should have the opportunity to access the situation, set his priorities, and institute his operating philosophy that is hopefully built on a team approach — cost $90,000 plus benefit4.

In the G&A budget there is a request for $225,638 for computer and server equipment, which does not include the POS system. This request was never discussed with Kevin or Nick. The recommendation of myself and Kevin is to pull this request from the budget until Nick and Kevin can review the request and come back to the Council in September with an appropriate budget and plan to implement such changes.

For background, the IWGR purchased a software system (Birch St.) in December for $30,000 plus a lease without Kevin or Chris being aware of such purchase. The system that was in place at the time of the replacement (Pocketbooks) was totally functional and able to be used by all senior personnel, whereas Birch limits accessibility to senior personnel.

Sales Administration
In the G&A budget, the IWGR shows two new sales positions (1 —July, 1— September). It is my understanding two sales positions were eliminated in May. Lisa, one of the employees let go, had been with the IWGR for over 11 years; and Paul, the other employee, had been with the IWGR for over 6 years. Now the IWGR is replacing them, which not only involves training costs and a loss of history; but more seriously, it exposes the IWGR and City to a violation of a CA law related to employees. The false pretense now is that the IWGR wanted full-time sales personnel, which is ironic since the banquet department has done just fine with Lisa and Paul working nine months per year.

This is just one small example of violations of CA labor laws over the last 18 months which the past and present Council has been made aware of.

Payroll Allocations
Through Kevin and my review of the allocated payroll account, we found those numbers were misrepresented and did not accurately reflect the true costs. If any Council member wants to discuss this further, either Kevin or 1 are available for a more detailed explanation (see attached),
Golf Academy
In discussions related to the Golf Academy, it has been represented that the Academy lost $100,000+. In requesting to see the financials, we found unexplained COS numbers to the tune of $82,368 (see attached). Since the only cost associated withthe Academy are limited to payroll and commissions, where did the COS numbers originate? At this point, Kevin is completing further due diligence on these unexplained numbers. Before the City goes off on another tangent and eliminates the Golf Academy on false pretenses, here are a few facts to consider:
4 • Every country club has some sort of golf academy to provide teaching services to the members, residents, or guests which normally include a°juniors program. The IWGR markets itself as a "golf resort".
• When the program was established approximately two years ago, the director of the Academy was not provided with the following:
o Budget
o Goals
o Marketing Plan
o Assistance from Senior Staff
The director, on his own, created the program and successfully put over 100 kids through the program. Related to marketing, there was no marketing support; in fact, the juniors program was removed from the website as was the ability to make a lesson appointment. Add to that, the GM brought another layer of

personnel in without any discussion and the director was cut off from communication with the GM. Add to that the City spent $130,000 orr hitting bays that have been grossly underutilized and not marketed. The IWGR management totally dropped the ball on these hitting bays. Sometimes you have to put blame where blame really belongs.

All of the information requested at the Council meeting was, according to the GM, readily available. That turned out not to be true.

New Entertainment Features
Over the last couple of years, a significant amount of money has been spent on new items without proper vetting or when the specific items were purchased there was a failure on the part of the IWGR management to properly implement these new items, which resulted in a failure to achieve a proper financial result:

Examples:
• Ice cream truck cost $30,000. Total revenue since January $5,802, or $87 per day. To operate the vehicle daily, it costs approximately $93 just for labor. There was never a justification for this purchase and it was buried in the capital budget for 2022/23. The truck should be sold.
• Top Tracer — cost $100,000+. There has been no marketing of this new product since inception. Until a proper marketing program is instituted, Top Tracer will not perform to anyone's expectations.
• Hitting bays (2) —cost $130,000. A program to promote these bays has never been implemented, which has resulted in minimal use and no return on the investment.

Going forward, there needs to be.a commitment to properly market these new items in conjunction with Shots in the Night.

Local Marketing Plan
At the last Council meeting the Council approved a marketing budget for local advertising. This budget equates to 1% of total revenue. Ben has been asked to present a local marketing plan for the period September --June at the September Council meeting. This plan should include the following:
• Monthly calendar of marketing promotions.
• Specific items to be presented monthly.
• Monthly budget.
• Monthly designation of media to be utilized.

Human Resources
For the last 18 months, there have been serious human resources issues that had an adverse effect on the proper operation of the facility, yet this issue has never been dealt with properly. I will not comment on this issue further.

Proper Accounting
Over time, the accounting for most departments, particularly_ Food Truck, Banquet and Shots have been changed resulting in distorted financial results. Kevin is reviewing this issue and has stated he will make the appropriate changes. The most important result from Kevin's efforts will be for the Council and City to be able to properly evaluate the success or problems with each entity.

In conclusion, it is important that the City and City Council hold Troon and the IWGR responsible for not only meeting the budgeted financial results, but also maintain proper operating procedures/standards. Some complain about micro -managing when in fact more micro -managing might have resulted in more accountability and less operational problems. The Council shouldn't have to micro -manage the IWGR. It is the responsibility of the City Manager and City CFO to provide oversight and not allow what has occurred the last 18 months.

Oversight was lacking. It is important to move forward and insist that the City Manager and City CFO provide greater oversight and question more frequently anything that appears to be out of line or not meeting the net income goals or budget.

Summary — Worse Case Scenario
In reviewing the worse case adjusted net operating profit and operating profit, it is disappointing that there was not a real attempt to reduce costs and reduce the operating loss vs. last year. The adjusted net operating -loss has only improved by $13,405 while the operating loss has improved by only $9,133.

In regards to payroll, there is an increase of $111,720, or 7.9% increase.

Since the budget for 2023/24 needs to be approved, there needs to be an understanding that the IWGR strive to exceed dramatically the approved budget for July, August, and September. If not, it will be very difficult to achieve the total budget for 2023/24.

Worse Case Scenario
Adjusted Net Operating Income:

Budget
Last Year
_
July
(580,028)
(480,466)
+99,562
August
(659,366)
(6761923)
-17,557
September
(710,944)
(779,544)
- -68,600
TOTAL
(1,950,338)
(1,936,933)
+13,405
0Deratine Profit:

July
(435,029)
(338,295)
August
(480,753)
(516,581)
September
(555,616)
(625,655)
TOTAL
(1,471,398)
(1,480,531)
-9,133
Payroll:

July
476,005
402,219
August
487,409
470,155
September
560,678
539,998
TOTAL
' 1,524,092
1,412,372
+111,720
+7.9%
Rounds:

July
2,496
2,548
August
3,399
3,114
September
3,715
3,565
TOTAL
9,610
9,227
+383 (4 rounds per day)

INDIAN WELLS G OLF RESORT
GENERAL & ADMINISTRATION BUDGET 2023/24 ASSUMPTI ONS
8udg et 2023/24
Prior Year . Varia nce
TOTALG & A EXPENSE $ 2,530,020 $
2,225,525,10 City requested 5% decrease year over year
City Target
Difference to Target
Other Reven ue
Total Payroll & Related S
Employee Recognition
Recruiting & Relation
Other Professional fees
Computer Related
Office Su pplies
Travel
Management Fee
(304,495)
29,019 $
1,592,506 $
69,269
23,200
225,638
24,156
23,800
337,402
2,342,658 $ 187,362 8.0%
38,565 $ (9,546) -24.8%
1,421,894 $ 170,612 12.0%
56,771 5 12,498 22.0%
78,037 $ (78,037) -100.0%
•� r. 5 (66,867) -74.2%
es 92 $ 124,846 123.9%
29,476 $ (5,320) -18.0%
16,983 $ 6,817 40.1%
327,574 $ 9,828 3 .0%
Will not have refund in new year e •-•'-'" '-7. I
Inventory supervisor added 9/1 - $7k
anagers rate adjustment 10.21 .23 • 4K each;
position empty 1 month
st $4/hr - $9k per year
d -+ 1 july; +1 Sept (Addl 56 k/year)
Salary rate adjustments
Learning & Development Mgr - 7/1 $90k - 1
Commissions - Decreased 1/2 with eliminated posit
Additional Conceirge/Admin p osition
Employee Wellness & R etention program
Security f or parking lot during peak periods
$118k computer /server repacement, Troon email accounts, cedar creek Do nut need expense for Receiving Cage
$1500 Qtrly trip to Troon; Leadership conference: Troon onslte visits Annual increase

General and Administrative
There are a number of expense items related to IWGR G&A that need further explanation:
• Computer related increase $100,792
o Need a full explanation
o Unless it can be justified, it should not be approved • Why does IWGR need Learning and Development Manager
o Need job description - =
o Justification
• Sales Admin. Position added (1 —July; 1— September)
It is my understanding two sales positions were eliminated (Paul and Leslie). If true, under CA law, you cannot replace their positions. Paul and Leslie should be brought back. Leslie was with IWGR for 11 years, and Paul approximately 6 years. • Why is Inventory Supervisor position needed?
• Salary rate adjustments — what were they?
Other:
• Review allocated payroll
o Explanation for difference
• Need number on ice cream truck
• Need local marketing plan — September — June
o Monthly promotions
o Budget
o Separate from Troon marketing budget

Allocated Payroll Analysis
Allocated Payroll
Vue
(235,426)
Beverage Cart
147,829
Banquets
434,624
Truck
76,590
Shots
18,861
707,904
Discrepancy of 27,522
Payroll 22/23
Payroll
Allocation
Total Payroll
Truck
184,790
76,890
261,380
Cart
145,938
147,829
293,767
Banquet
731,037
434,624
1,165,661
Shots
305,110
18,861*
323,971
Vue
1,859,725
(735,426)
1,124:299
*Not included in resort.

Budget Payroll 23/24 vs. Not Allocated Payroll 22/23
22/23
23/24
Variance
Truck
261,280
180,571
-80,809
Cart
295,767
210,205
-83,562
Banquet
1,168,661
771,330
-394,331
Shots
305,110
304,655
+455
Vue
1;x.24,299
, 1,478,380
+354,081
Where did total of allocated payroll go?

INMIAN WELLS GAL! RESORT
INCOM0 STATtMENT CONSOLIDAflD • 00145 ACADEMY • MAY 1593 ACYUAL 1 1.10ONT PRIOR YIAN ACTUAL PRIOR UM
MONTH 1h1 MONTH S11 MONTH K Y•T•u 4r Y T•D % ACTYAL Y•T•D 6S LIESSOH9 , , .1q•yG •. .,� 1 .. ,,„ Y_ FITTINGS . .,, ke2b MYoi.ei*55M1P,....�., ,.—..-..

MERi1NI-Tr 61.1P .. ,�. . •.��ei.._•� I
0 11
14 1'.'.
0 TOTAL:.i'1T r11 !i4tr•i
TOTAL N11'11011.
f :411
11! 1
PYAYRBLLT 0q(ERSCGMP . .,.. , , _... .....

I 1 f
MEDIC J.JG0HTAt 0 4, ,,,,, ,• _. ..... . . ... .. Ei01t +3I4 COSTS �T .., r,.. _..... ..... ..... 1,1
:110,.
r11Dl•:1Lt :Ill.r.f 1•r.
250
TO r#I. 61,11 !111.11166
t1rER!•rING PNn111
7 '.11J• W".'..
11:::044
.1.'1.!'54
rll11 :, opt I:A111.,. own 1
LfEE4�P ICY.PfIILENSE ', ..
nnitN corn st!4
• 11.4 1 n
:r.eva
!ar
1114'4
1_17..
...11.!'.0
I r:451 T1' 7.870 . r:

19.4 l,R7u 4 P'.:,
(•1111.:.:.

11.! 4
Iva OPETIIIIIN4 !Komi,
114,2271
:7.'llU1
•' 1.1'.•.

R175, 112'„. '11%1170;

03.3:01 -'..-
ti 7:121. .4(•IY;.

NET Ir1CO1.11 (Lass)

04.2:.21 ':,:.1
:`'.0701 .},1l.. •+#a7) .Iii.r•'.•
:1111.14701 •:"1.41.•.
03,3:01 .11.2"
466 7117; .46 fry...,
11 What I will be looking for at Marketing Presentation - Local marketing plan $220,000
o By month — promotions
o Dollar budget
Total budget marketing for year:
- How going to increase Vue revenue and customer counts o Menu
o Specials
o Marketing
o Service standards
- How going to increase revenue at Top Tracer and Shots - How going to promote and increase Golf Academy business - How driving additional golf rounds in summer and shallow seasons - How going to increase golfer count by 30%, or is this based on some other number or assumption
- Explanation of strategic direction
Other items to explain
Clear written explanation where allocated payroll 2022/23 was absorbed in 2023/24 budget
How budgeted payroll for 2023/24 for Vue went to 50% vs. 69% in 2022/23 - Total covers increase in budget by 5,117, +2.1%, or increase 1.4 covers per day correlates with goal of 10% increase for residents and 30% increase for golfers According to budget, golf rounds increased by 450 for year, or approximately 1.2 per day. How does this correlate with increase in summer and shoulder on seasons - G&A has gone up 30% plus since 21/22. What is this is based on:
o Increase in positions, or
o Just increase in salaries
Any ideas to increase NOI after capital
Pros and cons to combining night food truck sales with Shot in the Dark? How do we evaluate ROI without separating food truck from Shots
List of items requested before July Council meeting
Available Budget month -by -month for period 2023/24
Available - Worse case scenario this year 22/23 vs. budget for period July - September
Existing P&Ls for the following:

According to Swen Available - Top Tracer January — May 2023

- Shots in Night January -n May 2023 including
food truck
Golf Academy July 2022 — April 2023
Sales and if P&.L year-to-date for Hitting Bays
Should be available - Organization chart
- What positions elirdiriated January 2023 — May
2023
- What positions does IWGR anticipate to add
between May and October - -
Available - Capital expenses
Priorities
- Reasons for replacement, ie, age, etc.
- Explanation $100,000 for property signage
Available Shots/Top Tracer — budget only shows average sales per month 32,104 or 1,070 per day — explain why so
low or is it

Issues to Discuss with Troon
Loss in excess of $20.OM since first contract.

Over 50,000 customer count decrease since start of contract.

Failure on Troon's part to deal with serious Human Resource issues at IWGR. City manager not made aware of issues.
- Failure of Troon to achieve a reasonable profit on a $2.2M revenue increase through May.

Failure to properly operate food facilities, particularly at•the Vue. o Inconsistent standards of service.
o Inconsistent food quality.
o Incorrect positioning of Vue restaurant.

Failure to prepare a realistic budget for period July 2022 —July 2023. - Did not deal with excessive labor cost in Vue (70.0%).

Implemented software system (Birch St.) in December at a cost of $30,000 plus lease contract replacing existing system (Pocketbook) — no knowledge of City or City CFO of this purchase. -Question on whether this should have been capitalized or not. Was -not on capital budget for 22/23. Existing system was working without issues.
- Marketing plan for 22/23 did not include any local marketing in spite of City significant new investment in new concepts of:
o Top Tracer
o Golf Academy
o Hitting Bays
o Shots in the Dark
- Failure to provide proper oversight.

Proposed Motion Regarding Budget
• Recognize 1WGR did not meet the City's goal of preparing a worse case scenario for the period July -September.
• Approve the budget with the following adjustments:
o Delay any approval regarding computer related request until Kevin and Nick have the opportunity to review the request and_fnake a recommendation — bring back at September Council meeting. o Delay any consideration of hiring a Learning and Development Manager until a new GM has an opportunity to evaluate his needs. o Hold approval on property signage $100,000 (not street sign) until a clearer picture is available on what the signage will include - design, location, and cost.
o Reduce the contingency'(capital budget) to $60,000 from $108,679.

ATTACHMENT #1
RESOLUTI ON NO. 2023-

A RESOLUTI ON OF THE CI TY OF I NDI AN WELLS, CALI FORNI A,

ADOPTI NG THE GOLF RESORT OPERATI NG AND CAPI TAL BUDGETS FOR THE CI TY OF I NDI AN WELLS FOR THE FI SCAL YEAR 2023-24 AND FI SCAL YEAR 2024-25, AND APPROVI NG A PROCEDURE FOR PAYMENT

OF CLAI MS WITHOUT THE ISSUANCE OF WARRANTS PURSUANT TO GOVERNMENT CODE SECTI ON 53910 ET SEQ.

WHEREAS, the City Council held a public meeting on June 1, 2023, to review, consider, deliberate, and collect public input regarding the proposed Golf Resort biennial operating budget and capital improvement budget for the City of Indian Wells for fiscal year 2023-24 and fiscal year 2024-25; and,
WHEREAS, the City Council held a second public meeting on July 6, 2023, to review, consider, deliberate, and collect public input regarding the proposed Golf Resort biennial operating budget and capital improvement budget for the City of Indian Wells for fiscal year 2023-24 and fiscal year 2024-25; and,
WHEREAS, the proposed Golf Resort biennial operating budget and capital improvement budget submitted were modified by the City Council during the public meeting; and,
WHEREAS, a proposed Golf Resort biennial operating budget and capital improvement budget for the City of Indian Wells was submitted to the City Council on June 1, 2023, and on July 6, 2023, and,
WHEREAS, the proposed Golf Resort biennial operating budget and capital improvement budget submitted have been reviewed by the City Council; and WHEREAS, under Government Code Section 53910, the City's governing body may, by resolution, authorize practices concerning form, issuance, delivery, endorsement, and payment of warrants it deems convenient, efficient, and in the public interest, conforming substantially to those practices specified in Sections 53911, 53912, 53913, or 53914 of said Code; and WHEREAS, Government Code Section 53912 authorizes a city's governing body to provide that when funds are available for the payment of approved claims, the approval of claims for payment shall, without the issuance of any warrant, be the authority to the custodian of its funds to pay the claims by check or electronic transfer, so long as related registers and transfers contain substantially the same information as required by law to be maintained for a warrant; and
WHEREAS, the City Council for the City of Indian Wells deems it convenient, efficient, and in the public interest to provide that when funds are available for the payment of approved claims, the approval of claims for payment shall, without the issuance of any warrant, be the authority to the Finance Director / Agency Treasurer to pay the claims by check or electronic transfer.

City of Indian Wells
Resolution No. 2023 -

NOW, THEREFORE, THE CI TY COUNCI L OF THE CI TY OF I NDI AN WELLS DOES HEREBY RESOLVE AS FOLLOWS:

SECTI ON 1: Golf Resort Operating and Capital Budget Approved for Adoption.

Pursuant to and in accordance with applicable provisions of the Charter of the City of Indian Wells, the biennial operating budget and capital improvement budget for fiscal year 2023-24 and fiscal year 2024-25, submitted by the City Manager to the City Council on July 6, 2023, is hereby approved for adoption.

SECTI ON 2: Proposed Golf Resort Budget. Fiscal Year 2023-24 and Fiscal Year 2024-25. There is hereby appropriated from the unappropriated fund balances anticipated to be available on July 1, 2023, and from the estimated revenues and transfers to be received during the Fiscal Year(s) beginning July 1, 2023, and ending June 30, 2025, the following amounts necessary to fund the operating programs of the City Departments and the Capital Improvements Program for the City of Indian Wells during said Fiscal Years:
560 Indian Wells Golf Resort
Rscal Year Rscal Year
2023/ 24 2024/ 25
17,298,468 20,998,468
Total All Funds 17,298,468 20,998,468
SECTI ON 3: Legislative Control. The legislative format of the adopted budget shall be by Fund and Program for the operating budget and by Fund and Capital Project Group for the Capital Budget, as specified above in Section 1, and the change of any appropriation authorized above shall be subject to the approval of the City Council.

SECTI ON 4: Administrative Budget Control. It is hereby declared that, in addition to the legislative format, there is a need for administrative control over the adopted budget; and that the Finance Director, under the direction of the City Manager, shall detail the adopted budget to administrative control accounts; and that such detailing shall be consistent with the legislative format by the program for the operating budget and by project and expense item within a Capital Program Group for the capital budget.

SECTI ON 5: Budget Carryovers. It is hereby approved that all appropriations for prior fiscal years shall lapse at the end of Fiscal Year 2022-23. Any remaining amounts shall be credited to their respective fund balances, except for specific orders or encumbrances for operating and capital budgets outstanding at the end of the year, and as deemed necessary by the Finance Director, may be carried over to the following fiscal year. The Finance Director shall carry over the appropriation without further City Council action.

SECTI ON 6: Findings concerning City Charter. The City Council finds that expenditures set forth in the biennial operating budget for official meetings/conferences and for community presentations as set forth in the City Council department budget do not constitute payment for or reimbursement by the City -to -City Council Members for their personal use or

City of Indian Wells
Resolution No. 2023 -

benefit, as generally outlined in Section 101 of the City Charter, but instead pertain to matters of City business.

SECTI ON 7: Filing the Adopted Budget in the Office of the City Clerk. The City Clerk is hereby DI RECTS to file the biennial operating budget and capital improvement budget for fiscal year 2023-24 and fiscal year 2024-25 as adopted by the City Council on July 6, 2023, in the Office of the City Clerk.

SECTI ON 8: Use of Checks and Electronic Transfers in Lieu of Warrants. It is hereby approved that when funds are available for the payment of claims, the audit and approval of said claims by either the Finance Director, when authorized in Section 2.16.020 of the Indian Wells Municipal Code, or by the City Council in all other cases, shall, without the issuance of a warrant, be the authority to the legal depository holding the funds in the City Treasury to pay the audited claims by check or electronic transfer as authorized by Government Code § 53912. Registers and transfers maintained by the Finance Director pertaining to said checks and electronic transfers shall contain substantially the same information as required by law or ordinance to be maintained in connection with the use of warrants for payment of claims.

SECTI ON 9: Effective Date. This resolution shall take full force and effect on July 1, 2023, after its adoption by the City Council.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Indian Wells, California, on this 6th day of July 2023.

DONNA J.H. GRI FFI TH
MAYOR
CERTI Fl CATI ON FOR RESOLUTI ON NO. 2023-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTI FY that the whole number of the members of the City Council is five (5); that the above and foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells the 6th day of July 2023, by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELI CA AVI LA TODD LEI SHMAN

CI TY CLERK CI TY ATTORNEY

ATTACHMENT #2

INDIAN WELLS

GOLF RESORT
BUDGET

CAPITAL IMPROVEMENT PLAN
Fiscal Year 2023/2024

CITY OF INDIAN WELLS, CALIFORNIA
44-950 Eldorado Drive
Indian Wells, CA 92210
City Council
Draft
June 1, 2023

TABLE OF CONTENTS
Budget Message 1
Goals & Deliverables 7
Business Plan 10
Marketing Plan 23
Organizational Chart 37
Budget
Consolidated Budget 38
Consolidated Golf 39
Golf & Golf Academy 40
Merchandise 41
Golf Course Maintenance 42
Building 43
General & Administrative 44
Food & Beverage Consolidated 45
VUE Grille 46
Beverage Carts 47
Banquet & Catering 48
Food Truck 49
Shots in the Night (SITN) 50
Capital Expenditure Schedule 51
Assumptions 52

Golf Resort Budget Message
The Honorable Mayor and Members of the City Council:

City of Indian Wells, California
Presented for your
review is the proposed
Indian Wells Golf Resort
budget for the fiscal
years 2023-24.

It is a budget that
reflects the Indian Wells
Golf Resort's Mission
Statement:

To create extraordinary
resident and guest
experience by delivering
superior service,
amenities, and facility
conditions. Our commitment to the quality of our product, coupled with our operating results, will allow us to enhance the brand of Indian Wells Golf Resort and provide a financially sustainable future for the City of Indian Wells.

Among its many amenities, the park -like Indian Wells Golf Resort includes two excellent 18 -hole championship golf courses: The Celebrity Course, designed by Clive Clark, and the Players Course, created by John Fought. Fought also designed a lighted putting course. The Golf Resort also features versatile indoor/outdoor banquet facilities, a restaurant, and bar, an outdoor food truck with patio dining, a Pavilion event center, event lawns, a golf shop, "Shots in the Night," an evening/group entertainment venue and expert tournament planning services.

Utilizing the "Toptracer" technology, Shots in the Night transformed into a full-time, seasonal outlet operating with impunity from the variances presented by the weather, such as wind and direct sunlight. A Toptracer Range is the ultimate practice tool, taking the guesswork out of range sessions by offering an engaging, data -driven experience that appeals to everyone. Toptracer Range features several modes and games, much like Topgolf. For serious golfers looking to focus on practice, there is the driving range and "What's In Your Bag," which tracks total distance, carry, ball speed, launch, and hang time.

The Indian Wells Golf Resort has been a premier destination for amateurs, pros, and presidents. Along the way, the Resort has garnered numerous awards and accolades, including "One of the Best Golf Courses in America" by Leading Golf Courses of America, winner of Golf Digest's coveted "Best Places to Play" Gold Medal, and one of the "Top 10 Resorts in California" by California Golf magazine, Golden fork award, Dirona award for food and beverage as well as the wine spectator award. The Indian Wells Golf Resort hosts approximately 75,000 rounds annually and 235,000 food and beverage covers.

Douglas Fredrikson Architects designed the Golf Resort's 53,000 -square -foot clubhouse.

This contemporary masterpiece highlights magnificent fairways and mountain views and features sophisticated styling and comfort. The City continues to reinvest in the Golf Resort to encourage new revenue generation. The Pavilion (a 5600 sq. Ft. fully conditioned banquet facility) was built in December 2015, and the VUE restaurant kitchen, Bar experience, and dining room was fully remodeled in September 2019. This keeps facility amenities new and fresh looking, attracting recent events.

Celebrity Course
The Par 72 Celebrity Course
offers the winning combination
of aesthetic beauty and strategic
intrigue. With most holes on this
7,050 -yard course oriented
north/south to take advantage
of magnificent mountain views,
scenic water features, and a
profusion of wildflowers, leading
golf course architect Clive Clark
crafted a course that is
breathtaking in beauty. In
November 2007, this spectacular
course was the game site for the
25th annual LG Skins Game.

Players Course
Prominent golf course architect John
Fought designed this Par 72
championship course in the spirit of
a classic American design style. The
7,376 -yard course features wide
playing corridors, sculpted bunkers,
and traditional rectangular tee
boxes. The holes are oriented to
take full advantage of jaw -dropping
views of the surrounding mountains.

Fought used many of the mature
trees found on the original course to
impart the feel of a venerable facility while delivering a modern approach to golf course design. As a result, the Players Course was chosen to host the 2008 LG Skins Game in November 2008.

Summary of Strategic Goals and Priorities
The budget implements the Council's priorities and strategic goals, provides a financial plan that continues delivering first-rate services, and is responsive to the community's needs. The focus of a strategic plan is to outline the goals of the City Council for the community as a whole/organization over some time (one, three, or five years are typical). A Summary of Significant City Goals for the upcoming budget cycle is as follows:

Financial Goals
• Profitable before the amenity subsidy and after capital and maintenance expenses.
• Develop strategies to increase customers and check averages in all operations (e.g., Vue restaurant, banquets, golf, etc.).
• Identify opportunities to improve efficiency and operations to be more cost- effective while maintaining quality.
• Consider golf resort operating profits and energy savings from the new solar project to fund future capital needs.
• Refine the allocation of payroll in food and beverage operations.

Strategic Asset Plan Goals
• Authorize staff to develop more information on the possible upgrade to the Fairway Grill, banquet kitchen, and energy efficiency remodel of the pavilion and Golf Suites at the driving range.
• The Council expressed interest in negotiating with Renaissance Esmerelda on the possible sale of Hole 18 to offset the costs to redesign and relocate Holes 17 and 18 of the Player's Course.
• Each Council will provide opinions and thoughts to the City Manager regarding the possible sale of holes 17 and 18.
• Identify opportunities to improve efficiencies in operations that generate savings for the Indian Wells Golf Resort while maintaining a first-class golf resort. • Develop a comprehensive marketing strategy that promotes the Indian Wells Golf Resort as a golf and special events destination for visitors, including local and drive markets.
o Improve advertising by adding Top Tracer to Shots in the Night and the Academy.
• Expand partnerships with local hotels to increase customers at the Indian Wells Golf Resort for golf, dining, and special events.
• Focus on driving more golf rounds and increasing banquets at the Indian Wells Golf Resort. These are the top two profit centers for the golf resort. • Examine possible rebranding of the Vue restaurant's concept and menu, including a celebrity chef concept that targets all customers (e.g., golfers, residents, hotel guests, and local drive market).
• The Council authorized the City Manager to negotiate a new management agreement with Troon, with input from Council on policy decisions that need to be reflected in a new contract. If the City Manager is unsuccessful in negotiating a new contract, the City will give Troon notice and begin the RFP process. • New agreement negotiations to include policies to develop standards and expectations. It was the consensus of the Council to provide the City Manager with suggestions and feedback to develop negotiation strategies. If the City Manager and Troon cannot agree on a new agreement before June 30th, the staff is to notify Troon of the City's intent to conduct an RFP process for management services of the Indian Wells Golf Resort.

Budget Overview
The Budget Document comprises both the Annual Operating Budget and the Capital Budget. The Operating Budget is the total budget used to finance all day-to-day operations and obligations of the Golf Resort.

The fiscal year 2023/24 Adopted Budget totals $18.6 million for all Golf operations.

Indian Wells Golf Resort
Consolidated Budget Summary
Fiscal Year
2023-24
Budget
Rounds
76,507
Covers
237,728
Total Revenues (Net of Golf Subsidy)
19,613,644
Cost of Sales
3,177,065
Payroll
9,858,197
Operating Expenses
5,574,291
Total Operating
18, 609, 553
Net Operating Income before Capital
1,004,091
Capital Replacements
950,498
Net Operating Income After Capital
53,593
Capital Budget Overview
The capital improvement plan includes sixteen projects budgeted for $950,498.

Capital Category
Buildings And Structures
Clubhouse Equipment
Golf Course Equipment
Signage and Wayfinding
Emergency
Total Capital Replacements
Total Percentage
29,300 3.1%
20,000 2.1%
658,419 69.3%
133,800 14.1%
108,979 11.5%
950,498 100.0%

Conclusion
This Budget reflects the continuing effort by the City Council to have the City of Indian Wells engage in sound budget discipline and deliberate decision -making. As a result, the budget actions included in this document take serious steps to address a potentially weaker economic environment for the future.

Respectfully submitted,
Chris Freeland
City Manager

Indian Wells Golf Resort
Fiscal Year 2023-24 Budget
City Council Implementation Goals and Deliverables

1. Profitability
a. Golf Resorts should
be operated
profitably before the
Golf Amenity
Subsidy and after
capital expenditures.

2. General Fund Amenity
Subsidy
a. Specific to the
budget and monthly
financial statements,
the Amenity Subsidy shall be displayed as follows:
i. Golf Amenity subsidy — below the Net Income Line
ii. F&B and Merchandise — included in the Revenue line

3. Allocated payroll.
a. No allocated payroll based on revenue.
b. Each profit center shall be based on the staff working in the profit center.

In Troon's terminology, this is known as direct payroll. c. The Consolidated summaries in Golf and F&B and the Consolidated Financial Report shall contain all payroll costs required to operate the programs.
d. Remove allocated payroll lines from the budget and the monthly financial statements.
i. Direct payroll only.

4. Projected Net Operating Income by Department
a. As a Goal, the Budget should project Net Income as a % of Revenue as follows:
i. Golf, including golf maintenance: 25% to 30%
ii. Merchandise: 27% to 33%
iii. VUE: 8% to 12%

1. Cost of sales goals around 30%

2. Labor goals around 50%
iv. Beverage Carts: 38% to 42%
v. Banquets: 30% to 35%
vi. Food Truck & SITN: 30% to 35%

vii. These expectations exclude costs associated with building maintenance and G&A and are calculated to maintain profitability before the golf amenity subsidy and after capital.

5. Operating strategies incorporated into the new budget. a. Operate as a profitable business every year.
i. This could include limiting operating times and services during unprofitable periods.
ii. Identify opportunities to reduce operating losses during the first half of the fiscal year.
iii. Develop a worst -case scenario budget for the period June through September.
b. Evaluate COS and labor controls consistent with brand standards and revenue expectations.
c. Develop strategies to implement efficiencies to decrease G&A and building maintenance and golf maintenance costs. The savings goal is 5%.

6. Capital Budgeting:
a. Capital budget is limited to the replacement of existing equipment. b. The City Council approves all other capital improvements. i. An initial ROI analysis with preliminary figures will be included for each new capital project for Council consideration as deemed appropriate.
ii. If Council provides investigative approval, the ROI analysis will be restated as design and construction figures are confirmed.

7. Development of the New Concepts, the Business Plan, and the Marketing Plan a. These plans, at a
minimum, should
include strategies to
capture the following:
i. Protect the
Brand — we
need to
attract the
right kind of
new rounds
and covers.

Maintain the
golf rate.
ii. Expand summer and shoulder
iii. Drive additional golf rounds in
iv. Increase VUE covers annually.

1. Increase resident covers by 10%
seasons.
summer and shoulder seasons.

2. Increase golfer use by 30%.

3. Develop a VUE resident campaign.

4. Establish a local marketing campaign to encourage and attract new hotel guests, business lunches, and locals to support VUE.
v. Commit up to 1% of gross revenue to develop a local marketing plan budget.
b. New VUE concept
i. Work with Council to establish a new VUE identity.

INDIAN WELLS

GOLF RESORT

EXPERIENCETROON GOLF
To book tee times, please call 760.346.4653 or visit IndianWellsGoIfResort.com.

FOR THOSE WIT

A DRIVE FOR R
Connect with us
f g

BUSINESS PLAN
2023/2024 FISCAL
1 INDIAN �� WELLS

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INDIAN WELLS

GOLF RESORT

EXPERIENCETROON GOLF

EXECUTIVE SUMMARY
I. Financial summary
I I . Strategic direction
a. SWOT analysis
b. Competitive set
III. Key objectives
IV. Target segments & strategies
V. Organizational structure
11 INDIANcWIELL

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I. FINANCIAL SUMMARY
2023/24
Budget
2022/23
Forecast
2021/22
Actuals
2020/21
Actuals
2019/20
Actuals
Budget Var
To 22/23
Budget Var
To 21/22
Budget Var
To 20/21
Budget Var
To 19/20

TOTAL ROUNDS
76,507
16,057
16,500
61,430
56,402
450
1 15,077
20,105
Golf ADR
$123.51
5116.56
5104.60
587.46
586.31
$6.95
$18.91
$36.05
537.20
Merchandise ADR
$22.49
$21.42
$20.58
$12.78
515.89
$1.07
$1.91
$9.71
$6.60

F & B ADR
$101.50
$90.86
577.70
$43.26
$66.21
510.64
$23.80
$58.24
$35.29
Golf Fee Revenues
$9,449,314
$8,865,359
58,001,548
$5,372,821
54,868,197
$583,955
$1,447,766
$4,076,493
$4,581,117
Retail Revenues
$1,720,937
$1,638,844
$1,574,523
$785,276
$896,387
$82,093
$146,414
$935,661
$824,550
Range, Rental & Other (w/Amenity Fee)
$3,169,794
$3,150,323
$2,560,933
$2,239,763
$1,779,233
$19,471
$608,861
$930,031
$1,390,561
Vue Revenues
52,957,306
$2,697,403
$2,301,819
$1,813,415
$1,977,024
$259,903
$655,487
$1,143,891
$980,282
Banquet Revenues
S2,632,304
$2,392,566
$2,449,750
$108,376
$1,164,439
$239,738
$182,554
$2,523,928
$1,467,865
Food Truck Revenues
$413,875
$385,958
$446,495
$293,998
$274,993
$27,917
-$32,620
$119,877
$138,882
Beverage Cart Revenues
$757,041
$655,517
$623,138
$369,115
$317,975
$101,524
$133,903
$387,926
$439,066
Shots in the Night
51,005,105
$779,237
$122,764
50 50
$225,868
$882,341
$1,005,105
$1,005,105
IWGR Golf Academy
$215,056
$166,977
$142,672
50 $0
$48,079
$72,384
$215,056
$215,056
Other Income
$29,019
$38,565
551,848
$32,091
$43,395
-$9,546
-$22,829
-$3,072
-$14,376
TOTAL REVENUES $22,349,151
$20,770,149
$18,215,490
$11,081,238
$11,278,641
51,579,002
$4,014,261
$11,262,513
$11,071,110
50 $0
50 $0
Total Payroll & Related 59,858,197
$9,345,897
57,813,446
$5,852,650
56,748,636
$512,300
52,044,751
$4,005,547
53,109,561
Total Operating Expenses 58,751,356
$8,206,896
$7,457,773
$1,891,106
$1,928,809
5544,460
$1,293,583
$6,860,250
56,822,547
$0
$0
SO
50 NOI (Net Operating Income) $3,140,198
$3,217,956
$3,004,271
$360,988
-5781,327
$522,242
$735,927
$3,379,210
$4,521,525
NOI Adjusted w/o Amenity Fee $1,003,314
$487,009
$814,660
-$1,703,467
-S2,211,551
$516,305
5188,654
$2,106,781
$3,220,865
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EXPERI ENCE TROON GOLF®
II. STRATEGIC DIRECTION
In Fiscal 2022 /2023, Indian Wells Golf Resort had a record -breaking year. The three main reasons for this performance are the quality of the two golf courses, the quality of the team which, services individuals and groups that visit and experience The Indian Wells Golf Resort and the cache IWGR carries with golfers around the world.

Our vision for 2023/2024 encompasses continuing the momentum to generate positive financial outcome, building on the 'IWGR' brand and making IWGR and Indian Wells the ideal destination for residents and destination visitors from our main markets and the world. ➢ Increase golf ADR in all segments (except IW residents) ➢ Increase golf rounds in off-peak and shoulder seasons ➢ Increase ADC in all Food & Beverage
➢ Establish mid -week events business
➢ Increase week -end social business
➢ Drive Golfers to the VUE Bar & Grille and make it the Resident favorite of Indian Wells.

Focus will extend to the local community and market. IWGR's world -class experience is a primary amenity for the local residents. Resident focused engagement will be through hyper -targeted events and experiences combined with elevated communication. 13 4
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SWOT ANALYLIS

GOLF COMP SET
Club
PGA West
Desert Willow
Silver Rock
Classic Club
Location Distance
Holes/Type
La Quinta,
CA. 10 miles
Palm
Desert, CA
7 miles
La Quinta,
CA 10 miles
Private, resort
and
championship
courses.
36 holes,
resort style
courses.

Palm
Desert, CA
5 miles
18 holes,
resort/champi
onship course
Rates (Peak,
Shoulder, Off)
Renovations
(Year, Scope,
Cost)
Competitive Advantage
Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.
5/23 through 11/23
3 of 9 golf courses,
replacing greens and
overall experience.

All greens on Fires
Cliff's course will be
renovated. Timeline
not yet set within
12months.

From 2021— to now.

No end date for
renovation set.
18 holes,
championship
course
Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

TBD.

Hosts Amex Tournament, carries
cache as top destination for
golfers in The Western US.

Top Muni course same as IWGR.

No distinct advantage.

None yet. Campus is in full
construction with developer not
yet securing funding to finish
project. 4 and 5 star hotel
properties with a full conference
center and individual residences
for purchase.

Sister course to IWGR, great
conditions and player
experience. Hosts some of the
top charity tournaments in
Coachella Valley.
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DINING COMP SET
Club/Restaurant Location
Distance
Cuisine
Pricing
Tommy Bahama
Eureka
Pacifica
Palm Desert, El Paseo
Highway 111, Indian Wells

3.5 miles
Classic American and
Mediterranean flair, big
bar, prime location on El
Paseo.

2.0 miles
El Paseo, Palm Desert 3.4 miles
Beer Hunter
Highway 111, Palm Desert

2.4 miles
Lunch Avg. $35
Dinner Avg. $45
Chain restaurant elevated
experience American Food
craft/local drinks
Elevated Fine Dining —
Seafood restaurant. 15
years in business, 3 private
dining space options
Lunch Avg. $35
Dinner Avg. $35
Lunch Avg. $45
Dinner Avg. $65
Classic American Sports
Bar with pool tables, larges
bars and sticky floors
Cliff House
Highway 111, La Quinta

2.1 miles
Lunch Avg. $25
Dinner Avg. $40
Fine Dining — Grille/Steak
house — American Food,
extensive wine list, multiple
private dining options
Dinner Avg. $75
15 INDIANcWELL

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EVENTS COMP SET
Club
Location Distance
Site Fee
Capacity
Site Notes
Indian Wells
Country Club
Indian Wells, 1 mile
CA
$2 to $5k with $15k F&B Minimum
The Living Desert
La Quinta Resort
Palm Desert
La Quinta
Acrisure Arena
Palm Desert
5 miles
5 miles
5 miles
Desert Willow Golf Palm Desert 7 miles
Resort
Classic Club
Palm Desert
5 miles
Fee's start at $3k. 12 different
event spaces.
$3.5k wedding fee, reduced to
$1,750 off-season, Two venues:
one is up to 200 guess with a
$46k++ minimum. The second
space is up to 300 guests with a
$57k++ minimum. Bar and
intermezzo included in all
packages.

Plated begins at $190++ p/p
Buffet begins at $185++ p/p.

From $5k to $250k
Up to 10,000 people. Indoor and
outdoor spaces. Dedicated
secondary ice rink for public and
events.
$2.5k venue fee if under 50 guests.

Otherwise, fee is waived. Packages
start at $93++ up to $145++
Additional hours are $1k each. No
F&B minimums. Venue is also their
restaurant.
400
One of the original clubs in greater
palm springs. Massive ballroom,
great views.
500
350
Building a 500 person indoor event
facility. Completion in 2026.

The original Desert getaway.

Showing its age and relations with
PGA West are ambiguous.

NA
10,000
Newest space in the desert. Hosts
the CV Firebirds hockey team,
concerts and various
entertainments.
300
Single level clubhouse with two
well ranked courses. Large patio
overlooking the golf courses for
events. Lots of parking
500
Large club house, lots of parking
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KEY OBJECTIVES
#1 Increase golf ADR in all segments (except IW residents) a. Digital marketing
b. Print advertising
c. Media production
d. Pricing strategy
e. Revenue management
#2— Drive Golfers to the VUE Bar & Grille and make it the resident favorite. a. Establish VUE promotion program for outside services team b. Focus on using residents name from valet through cart return c. Communications: Promote VUE through golf cart media system and The Arrow resident newsletter
d. Establish VUE theme nights
e. Timely updates to menus and website
f. Social media campaign for local awareness
#4 — Increase ADC in all Food & Beverage
a. Evaluate comp set for Weddings
b. Approved menus to be used
c. Golf sales to promote F&B with all tournaments
d. Promotion of Theme nights at SITN and The VUE
17 8 INDIANcWELL

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#5— Establish mid -week events business
a. Create corporate event package
b. Create and publish 'Events' landing page on website
c. Marketing campaign for corp. events
#6 — Increase golf rounds in off-peak and shoulder seasons a. Continue to work with campus hotels for direct stay and play programs b. Continue with email marketing program to drive in markets c. Maximize tee sheet utilization year round — continue with dynamic pricing model. Continue to participate in Troon's Revenue management program d. Create special offers bundling golf, F&B and other services to entice golfers during the summer
#6 — Increase weekend social business
a. Sales team will pro -actively market the weekend to local and destination groups
b. Create special offers for Friday and Sunday weddings c. Create celebration of life program with tiered options and high quality tri-fold brochure
d. Restructure public facing side of 'The Knot', "Wedding Wire' and here comes the guide
18 9

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Target Markets

1. Residents & Locals

2. Destination Golfers

3. Group Golf

4. Troon Golfers

5. Social & Other Catering

6. VUE Bar & Grille
19 10
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EXPERI ENCE TROON GOLF®
TARGET SEGMENT 1
Residents 1 local marketing

1. Localized digital campaign

2. Local TV ads

3. Enhanced communications

4. Local radio

5. Visit Greater Palm Springs

6. Social media
TARGET SEGMENT 2
Destination golfers

1. Email Marketing Campaign

2. Professional Video Production

3. SEO/SEM Campaign

4. Social Media Marketing Campaign

5. Stay & Play Package Offerings

6. Leverage Print Publication Advertising
TARGET SEGMENT 3
Group Golf

1. Professional Collateral

2. Charity Golf Tournament Summit

3. Email Marketing Campaign

4. SEO/SEM Campaign

5. Social Media Marketing Campaign

6. Event Planner Toolbox
20 a
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TARGET SEGMENT 4
Troon Golfers

1. Troon Card

2. Troon Rewards

3. Troon Advantage

4. Troon Email Blasts

5. Troon CA Co -Op

6. Troon Challenge
TARGET SEGMENT 5
Social & Other Catering

1. Professional Collateral

7. Email Marketing Campaign

8. SEO/SEM Campaign

9. Social Media Marketing Campaign

10. Stage event summit
TARGET SEGMENT 6
VUE Bar & Grille

1. Professional Collateral

2. Email marketing

3. Seo/Sem campaign

4. Social media marketing
21 12 INDIAN WELL

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EXPERIENCETROON GOLF
Joe Williams
Director of Golf
# of Managers = 8
# of Associates = 23
Lorean Vargas
Interim F&B Director
# of Managers = 3
# of Associates = 63
Sven Wiedenhaupt
General Manager
Nick Leitner
Superintendent
# of Managers = 4
# 44 Associates = 32
Ben Rodny
Director of S&M
# of Event Sales=2
# of Golf Sales=2
# of Concierge = 3
Danette Perotta
Dir. of Finance
# of Managers = 1
# of Associates = 1
Nona Howard
Admin Staff
13 INDIAN �' WELLS

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Indian Wells Golf Resort
SALES AND MARKETING PLAN 2023

THE ACADEME

SHITS VUL

IN THE NIGHT

GRILLE & BAR
TROON

Plan overview
This Sales &Marketing Plan
compliments the IWGR Business
Plan in outlining the following for
our defined target markets:
• Strategic Direction
• SWOT Analysis
• Competitive Set
• Target Markets
- Strategy
- Tactics

STRATEGIC DIRECTION
Our Strategic Direction for 2023/2024 is continuing the momentum to generate positive financial outcomes. Our objectives include:
• Increase golf ADR in all segments (except IW residents) • Increase golf rounds in off-peak and shoulder seasons • Increase ADC in all Food & Beverage
• Establish mid -week events business
• Increase week -end social business
• Drive Golfers to the VUE Bar & Grille and make it the Resident favorite of Indian Wells.

This plan defines the markets we plan to target in pursuit of these objectives along with the supporting strategies and tactics that will be used.
25 INDIAN WELLS GOLF RESORT SALES & MARKETING PLAN 2023 T!O O N

1 1
1 1
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GOLF COMP SET
Club
L ailn
Dunce
Holes/Type
Rates (Peak,
Shoulder, Qffl
Renovations
(Year, Scope/
Cost)
Cornpetitive Advantage
PGA West
Desert Willow
Silver Rock
Classic Club
La Quinta,
CA. 10 m i
Palm
Desert, CA
les
7 miles
La Quinta,
CA 10 m
Palm
Desert, CA
les
Private, resort
and
championshi
courses.
36 holes,
resort style
courses.
p
18 holes,
resort/champi
onship course
18 holes,
5 miles championship
course
Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.

Peak Season from 10/1
through 5/1. Shoulder
from 5/1 to 6/1.

Summer season from
6/1 through 9/30.
5/23 through 11/23
3 of 9 golf courses,
replacing greens and
overall experience.

All greens on Fires
Cliff's course will be
renovated. Timeline
not yet set within
1months.

From 2021 — to now.

No end date for
renovation set.

TBD.

Hosts Amex Tournament, carries
cache as top destination for
golfers in The Western US.

Top V uni course same as IWGR.

No distinct advantage.

None yet. Campus is in full
construction with developer not
yet securing funding to finish
project. 4 and 5 star hotel
properties with a full conference
center and individual residences
for purchase.

Sister course to IWGR, great
conditions and player
experience. Hosts some of the
top charity tournaments in
Coachella Valley.

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DINING COMP SET
Club/Restaurant
Location
Distance
Cuisine
Pricing
Tommy Bahama
Eureka
Pacifica
Beer Hunter
Cliff House
Palm Desert, El Paseo

3.5 miles
Highway 111, Indian Wells
El Paseo, Palm Desert
Highway 111, Palm Desert
Highway 111, La Quinta

2.0 miles

3.4 miles

2.4 miles

2.1 miles
Classic American and
Mediterranean flair, big
bar, prime location on El
Paseo.

Chain restaurant elevated
experience American Food
craft/local drinks
Elevated Fine Dining —
5eafood restaurant. 15
years in business, 3 private
dining space options
Classic American Sports
Bar with pool tables, larges
bars and sticky floors
Fine Dining — Grille/Steak
house — American Food,
extensive wine list, multiple
private dining options
Lunch Avg. $35
Dinner Avg.. $45
Lunch Avg. $35
Dinner Avg. $35
Lunch Avg. $45
Dinner Avg. $65
Lunch Avg. $25
Dinner Avg. $40
Dinner Avg. $75

ID iN WELLS G•LF'ES•'T SALES : M & KETING 'LAN 2123

EVENTS COMP SET
Club
Location
Distance
Site Fee
Capacity
Site Notes
Indian Well
CouRby Club
The living Desert
Indian Wells,
CA
1 mile
Palm Desert 5 miles
La Quints Resort
La Quinta 5 miles
ire Arena
Desert Mow if
Resort
Classic Club
Palen pert
5 miles
Palm Desert 7 miles
Palm Desert
miles
NA
NA
$3.51 wedding fee, reduced to
$1,750 off-season, Two venues:
one is up to 200 guess with a
$46k++ minimum_ The second
space is up to 300 guest with a
$57k++ minimum. Bar and
intermezzo included in all
packages_
Plated begins at $190++ pip
Buffet begins at $185++ pip.

From $5k to S250k
Up to 10000 people. Indoor and
outdoor spaces_ Dedicated
secondary ice rink for public and
events.
$2.5k venue fee if under 50 guests.

Otherwise, fee is waived. Packages
start at $93++ up to $145++
Additional hours are $ik each. No
F&B minimums_ Venue is also their
restaurant.

NA
One of the original dubs in greater
400 palm springs. Massive ballroom,
great views_
Building a 500 person indoor event
500 facility. Completion in 2026
The original Desert getaway.
350 Showing its age and relations with
PGA West are ambiguous.
1o,o00 Newest space in thedesert. Hosts
the CV F i rebi rds hockey team,
concerts and various
entertainments_
300 Single level clubhouse with two
well ranked courses. Large patio
overlooking the golf courses for
events_ Lots, of parking
500 Large dub house, lots of parking

TARGET MARKETS

1. Residents / Locals

2. Destination Golfers

3. Group Golf

4. Troon Golfers

5. Social &Other Catering

6. VUE Bar &Grille

RESIDENT AND LOCALS

DESTINATION GOLFERS

GROUP GOLF

CUSTOMERS

TROON GOLFERS
34 VUE BAR AND GRILL

CUSTOMERS

INDIAN WELLS GOLF RESORT
ORGANIZATIONAL CHART 2023/2024
Dir of Finance
Danette
Perrotta
Joe Williams -
Dir of Golf
Tom Burley
Head Golf Pro
Pam Vincent
City Mgr - Chris
Feeland
Troon Golf - Bill
O'Brien
General Manager
Sven Wiedenhaupt
Dir of
Agronomy
Nick Lietner
Merchandise
Mgr
F & B Mgr
TBD
Director of F &
B
Lorena Vargas
Asst Dir of FB
Earl Schryver
F & B Mgr
TBD
Facilities Mgr.

George Edward
Sales Manager
Sharon Clark
Exec Chef
Juan Leon
Dir. of
Sales/Mkt
Ben Rodny
Sales Manager
Beth
Widdowson
Banquet Mgr
Robert Reyes
HR Coorindator
Nona Howard
Sales Manager
Jenny Poland

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

CONSOLIDATED
2023-24 Budget
2022-23 Actuals Variance 2021-22 Actuals
Variance
ROUNDS
76,507
76,057 450 76,500
7 COVERS
237,728
232,611 5,117
151,469
86,259

REVENUES

GOLF FEES
9,449,314
8,865,359
583,955
8,001,548
1,447,767

MERCHANDISE
1,720,937
1,638,844
82,092
1,574,523
146,414

FOOD & BEVERAGE
7,765,631
6,910,682
854,950
5,943,966
1,821,665

RANGE, RENTAL & OTHER
3,414,646
3,356,582
58,064
2,756,285
658,361

TOTAL REVENUES
22,350,528
20,771,467
1,579,061
18,276,322
4,074,206

COST OF SALES

COS -MERCHANDISE
936,436
882,467 53,969
819,737
116,699
AS % OF REVENUE

54.41%

53.85% 0.57%

52.06%

2.35%

COS - FOOD & BEVERAGE
2,059,114
1,799,201 259,913
1,621,166
437,948
AS0/0 OF REVENUE

26.52%

26.04% 0.48%

27.27%
-0.76%

GOLF COS
181,515
183,231
(1,716)
208,030
(26,514)
AS % OF REVENUE

1.17%

1.23%
-0.06%

1.61%
-0.45%

TOTAL COST OF SALES
AS % OF REVENUE
3,177,065

14.21%
528,133
-0.28%
2,864,899
312,166
2,648,932

13.79%

0.42%

14.49%

GROSS MARGIN
19,173,463
3,546,073
17,906,568
1,266,895
15,627,390

PAYROLL

PAYROLL
9,858,197
9,345,897
512,300
7,813,446
2,044,751

TOTAL PAYROLL
A5 % OF REVENUE
9,858,197

44.11%
2,044,751

1.36%
9,345,897
512,300
7,813,446

44.99%
-0.89%

42.75%

OPERATING EXPENSES

OPERATING EXPENSES
5,574,291
5,341,999
232,293
4,808,841
765,450

TOTAL OPERATING EXPENSES
5,574,291
5,341 999
232,293
4,808,841
765,450
A5 0/a OF REVENUE

24.94%

25.72% -0.78%

26.31%
-1.37%

NET OPERATING INCOME
AS % OF REVENUE
3,740,975

16.74%
735,872

0.30%
3 218 672 522,303
3,005,103

15.50%

1.24%

16.44%

RESIDENT AMENITY

RESIDENT DISCOUNTS AMENITY
-
-
0 -
-

RESIDENT GREEN FEE AMENITY
2,736,884
2,730,947
5,937
2,189,611
547,273
2 73. 884
2 7 . 947
937
2 18' 611.
47 27
AS0/0 OF REVENUE

12.25%

13.15%
-0.90%
11:98%

0.26%
NET OPERATING INCOME W/0 AMENITY
AS % OF REVENUE
1,004,091

4.49%
487,725 516,366 815,492
188,599

0.03%
235%

2.14%

4.46%

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
154,587
161,776
(7,189)
212,434
(57,847)

TOTAL ROU LEASE DEPRECIATION EXPENSES
154,587 161,776 (7,189) 212,434 (57,847)
AS % OF REVENUE

0.69%

0.78%
-0.09%

1.16%
-0.47%

NET INCOME AFTER DEPRECIATION
849,504 325,950 523,554 603,058 246,445
AS % OF REVENUE

3.80% 1.57% 2.23% 3.30% 0.50%
PAYROLL STA TS:

FULL TIME EQUIVILANCE
154.94 149.25

5.69 38
140.95Page 48530 516

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

GOLF, GOLF ACADEMY, MERCHANDISE AND GOLF MAINTENANCE
2023-24 Budget 2022-23 Actuals
Variance 2021-22 Actuals
Variance
ROUNDS

RESIDENT ROUNDS
18,403
18,403
-
18,271
132

RESIDENT GUEST ROUNDS
4,624
4,624
-
4,671
(47)

TOURAMENT/GROUP ROUNDS
15,562
15,562
-
17,273
(1,711)

ALL OTHER ROUNDS
37,918
37,468
450
36,285
1,633

TOTAL ROUNDS
76,507
76,057
450
76,500
7 AVERAGE PER ROUND
123.51
116.56

6.95 104.60

18.91 REVENUES

RESIDENT REVENUE
773,332
771,064
2,268
766,610
6,722

RESIDENT GUEST REVENUE
479,114
475,219
3,896
485,282
(6,167)

TOURNAMENT/GROUP REVENUE
2,206,367
2,054,798
151,568
1,945,343
261,023

ALL OTHER GOLF FEE REVENUE
5,990,502
5,564,278
426,223
4,804,313
1,186,189

GOLF FEE REVENUES
9,449,314
8,865,359
583,955
8,001,548
1,447,767

OTHER GOLF REVENUES

MERCHANDISE REVENUE
1,720,937
1,638,844
82,092
1,574,523
146,414

RANGE, RENTAL & OTHER REVENUE
446,408
432,873
13,535
387,864
58,544

GOLF ACADEMY
216,056
166,977
48,080
142,672
72 384

TOTAL OTHER GOLF REVENUES
2,382,401 2,238,694
143,707
2,105,059
277,342

TOTAL GOLF REVENUES
11 831 715 11,104,053
727,662
10 106,607 1 725 108

COST OF SALES

COST OF SALES - MERCHANDISE
936,192
882,467
53,725
819,737
116,455

COST OF SALES - RANGE RENTAL & OTHER
93,372
91,098
2,274
112,610
(19,238)

COST OF SALES - GOLF ACADEMY
88,143
92,133
(3,990)
95,419
(7,276)

TOTAL COST OF SALES
1,117,707
1,065,699
52,008
1,027,766
89,941
A5 % OF REVENUE

9.45%

9.60%
-0.15%

10.17%
-0.72%

GROSS MARGIN
10,714,008
10,038,355
675,653
9,078,841
1,635,168

PAYROLL

PAYROLL
4,408,251
4,200,056
208,195
3,305,860
1,102,391

TOTAL PAYROLL
4,408,251
4,200,056
208,195
3,305,860
1,102,391
AS % REVENUE

37.26%

37.82%
-0.57%

32.71%
X4.55%.

OPERATING EXPENSES

OPERATING EXPENSES
3,110,835
2,986,374
124,461
2,813,698
297,138

TOTAL OPERATING EXPENSES
3,110,835
2,986,374
124,461
2,813,698
297,138
AS % OF REVENUE

26.29%

26.89%

0.80%:

27.84%

1.55%

NET OPERATING INCOME
3,194,922
2,851,925
342,997
2,959,283
235,639
AS % OF REVENUE

27.00%
.25.68%

1.32%

29.28%
-2.28%

RESIDENT AMENITY

RESIDENT GREEN FEE AMENITY
2,723,386
2,717,450
5,936
2,173,069
550,317

TOTAL RESIDENT AMENITY
2,723,386
2,717,450
5,936
2,173,069
550,317
AS % OF REVENUE

23.02%

24.47%
-1.45%

21.50%

1.52%

NET OPERATING INCOME W/ AMENITY
5,918,308
5,569,375
348,933
5,132,352
785,956
A5 % REVENUE

50.02%

50.16%.
-0:14%

50.78%
-0.76%

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
151,011
158,831
(7,820)
206,704
(55,692)

TOTAL ROU LEASE DEPRECIATION EXPENSES
151,011
158,831
(7,820)
206 704
(55,692)

NET INCOME AFTER DEPRECIATION
5,767,297
5,410,544
356 753
4 925 649 841,648
PAYROLL STA7S:

FULL TIMEEQUIVILANCE

74.09 71.87 2.22 6.01 7.05

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

GOLF & GOLF ACADEMY
2023-24 Budget 2022-23 Actuals
Variance
2021-22 Actuals
Variance
ROUNDS

RESIDENT ROUNDS

RESIDENT GUEST ROUNDS
4,624
4,624 -
4,671
(411

TOURNAMENT/GROUP ROUNDS
15,562
15,562
-
17,273
(1,711)

ALL OTHER ROUNDS
37,918
37,468
450
36,285
1,633
450

TOTAL ROUNDS
76,507
76,057
76,500
7 AVERAGE PER ROUND
123.51
116.56

6.95 104.60

18.91 REVENUES

RESIDENT REVENUE
773,332
771,064
2,268
766,610
6,722

RESIDENT GUEST REVENUE
479,114
475,219.
.3,896
485,282
(6,167)

TOURNAMENT/GROUP REVENUE
2,206,367
2,054,798
151,568
1,945,343
261,023

ALL OTHER GOLF FEE REVENUE
5,990,502
5,564 278
426,223
4,804,313
1,186,189

GOLF FEE REVENUES
9,449,314
8,865,359
583,955
8,001,548
1,447,767

OTHER GOLF REVENUES

RANGE, RENTAL &OTHER REVENUE
446,408
432,873
13,535
387,864
58;,544

GOLF ACADEMY
215,056
166,977
48,080
142,672
72,364

TOTAL OTHER GOLF REVENUES

TOTAL GOLF REVENUES
661,464
10,110,778
599,850
9,465,209
61,614
645,569
530,536
8,532,084
130,928
1,578,695

COST OF SALES

COST OF SALES - RANGE, RENTAL & OTHER
93,372
919098
2,274
112,610
(19,238)

COST OF SALES - GOLF ACADEMY
88,143
92'•133
(3,990)
95,419
(7,276)

TOTAL COST OF SALES
A5 % OF REVENUE
181,515

1.80%
183,231

1.94%
(1,716)
-0.14%
208,030

2.44%
(26,514)
-0.64%

GROSS MARGIN
9,929,263
9,281,978
647,285
8,324,054
1,605,209

PAYROLL

PAYROLL
1,780,442
1,773,618
6,824
1,440,512
339,930

TOTAL PAYROLL
AS % REVENUE
1,780,442

17.61%
1,773,618
18,74%I
6,824
1,440,512
339,930
-1,13%

16.88%

0.73%

OPERATING EXPENSES

OPERATING EXPENSES
944,507
933,228
I 11,280
843,306
101,201.

TOTAL OPERATING EXPENSES
AS % OF REVENUE
944,507

9.34%
933,228

9.86%
11,280
-0.52%
843,306

9.88%
101,201
-0.54%

NET OPERATING INCOME
AS %OF REVENUE
7,204,314

71.25%
6,575,132
6447%
629,182
6,040,237
1,164,077

1.79%
70,79%
0,46%

RESIDENT AMENITY

RESIDENT GREEN FEE AMENITY
2,723,386
2,717,450.
5,936
2,173,069
550,317

TOTAL RESIDENT AMENITY
A5 % REVENUE
2,723,386

26.94%
2,717,450
28,71%
5,936
-1.77%
2,173,069

25.47%
550,317

1.47%

NET OPERATING INCOME W/AMENITY
A5 % OF REVENUE
9,927,700

98.19%
9,292,582
98,18%
635,118
8,213,306
1,714,394

0.01%

96.26%

1.93%

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
77,047
80,1.05
(3,058)
125 925
(48,878)
18,403
18,403
18,271
132

TOTAL ROU LEASE DEPRECIATION EXPENSES

NET INCOME AFTER DEPRECIATION
PAYROLL STATS:

FULL 77MEEQUIVILANCE

32.13 32.69
(0.56)

29.30 2.83

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

MERCHANDISE
2023-24 Budget 2022-23 Actuals Variance 2021-22 Actuals Variance

REVENUES

MERCHANDISE REVENUE
1,720,937
1,638,844
82,092 1,574,523
146,414

TOTAL REVENUES

AVERAGE PER ROUND
1,720,937

22.49 82,092
146,414

1.91 1,638,844
1,574,523

21.55 0.95

20.58 COST OF SALES

COST OF SALES
936,192
882,467
53,725
819,737
116,455

TOTAL COST OF SALES
936,192

54.40%
882,467

53.85%
53,725

0.55%
819,737

52.06%
116,455

2.34%
AS % OF REVENUE

GROSS MARGIN
784,745
756,377
28,368
754,786
29,959

PAYROLL

PAYROLL
240,338
218,446
21,891
189,440
50,898

TOTAL PAYROLL
240,338
218,446
21,891
189,440
50,898
AS % OF REVENUE

13.97%

13.33%

0.64%

12.03%

1.93%

OPERATING EXPENSES

OPERATING EXPENSES
18,981
16,638
2,343
35,128
(16,147)

TOTAL OPERATING EXPENSES
18,981

1.10%
16,638

1.02%
2,343

0.09%
35,128

2.23%
(16,147)
-1.13%
AS % OF REVENUE

NET OPERATING INCOME
525,426

30.53%
521,293

31.81%
4,134
-1.28%
530,218

33.67%
(4,792)
-3.14%
AS % OF REVENUE
PAYROLL STATS:

FULL TIME EQUIVILANCE

3.54 3.50

0.04 3.19
035

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

GOLF COURSE MAINTENANCE
2023-24 Budget
2022-23 Actuals
Variance
2021-22 Actuals
Variance

PAYROLL

PAYROLL
2,387,471
2,207,991
179,480
1,675,908
711,563

TOTAL PAYROLL
2,387,471
179,480
711,563
2,207,991
1,675,908

OPERATING EXPENSES

OPERATING EXPENSES
1,475,064
1,385,459
89,605
1,303,276
171,788

TOTAL OPERATING EXPENSES
1,475,064
1,385,459
89,605
1,303,276
171,788

UTILITIES

UTILITIES
672,038
651,049
20,989
631,987
40,050

TOTAL UTILITIES
672,038
651,049
20,989
631,987
40,050

NET OPERATING INCOME LOSS
4,534,573
4,244,500
290,074
3,611,172
923,402

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
73,965
78,726
(4,761)
80,779
(6,814)

TOTAL ROU LEASE DEPRECIATION EXPENSES
73,965
78,726
(4,761)
80,779
(6,814)

NET INCOME (LOSS) AFTER DEPRECIATION
(4,608,538)
(4,323,226)
(285,312)
(3,691,950)
(916,587)
PAYROLL STATS:

FULL TIME EQUIVILANCE

38.42 35.67 2.75 34.55 3,87

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

BUILDING
2023-24 Budget 2022-23 Actuals Variance 2021-22 Actuals Variance

PAYROLL

PAYROLL
623,579
573,731 49,848
502,758
120,820

TOTAL PAYROLL
623,579
49,848
120,820
573,731
502,758

OPERATING EXPENSES

OPERATING EXPENSES
121,106
128,817
(7,711)
197,626
(76,520)

TOTAL OPERATING EXPENSES
121,106
128,817
(7,711)
197,626
(76,520)

UTILITIES

UTILITIES
414,563
406,763
7,800
389,736
24,827

TOTAL UTILITIES
414,563
406,763
7,800
389,736
24,827

NET INCOME (LOSS)
(1,159,247)
(1,109,311) (49,937)
(1,090,120)
(69,127)
PAYROLL STATS:

FULL TIME EQUIVILANCE

9.29 8.84 0.45 8.85 0.44

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

GENERAL & ADMINISTRATIVE
2023-24 Budget 2022-23 Actuals Variance
2021-22 Actuals Variance

OTHER NON -OPERATING INCOME

OTHER NON -OPERATING INCOME
29,019
38,565
(9,546)
51,848
(22,829)

TOTAL OTHER NON -OPERATING INCOME
29,019
38,565
(9,546)
51,848
(22,829)

PAYROLL

PAYROLL
1,592,506
1,421,894
170,612
1,219,574
372,932

TOTAL PAYROLL
1,592,506
1,421,894
170,612
1,219,574
372,932

OPERATING EXPENSES

OPERATING EXPENSES
965,951
958,815
7,136
706,219
259,732

TOTAL OPERATING EXPENSES
965,951
958,815
7,136
706,219
259,732

NET OPERATING INCOME
(2,529,438)
(2,342,143)
(187,295)
(1,873,945)
(655,493)

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
3,576
2,559
1,016
2,843
733

TOTAL ROU LEASE DEPRECIATION EXPENSES
3,576
2,559
1,016
2,843
733

NET INCOME LOSS AFTER DEPRECIATION
2,533,014 2,344,703)
188,311
1,876,788
656,226
PAYROLL STATS:

FULL TIME EQUIVILANCE

13.90 11.17 2.73

10.41 3.49

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

FOOD & BEVERAGE CONSOLIDATED
2023-24 Budget 2022-23 Actuals
Variance 2021-22 Actuals
Variance
COVERS
COVERS
230,050
225,631
4,419
145,240
84,810

COVERS - RESIDENT
7,678
6,980
698
6,229
1,449

TOTAL COVERS

AVERAGE PER COVER
237,728

32.67 5,117
86,259
(6.58)
232,611
151,469

29.71 2.96

39.24 REVENUES

FOOD & BEVERAGE REVENUE
7,765,631
6,910,682
854,950
5,943,966
1,821,665

TOTAL REVENUES
7,765,631
6,910,682
854,950
5,943,966
1,821,665

COST OF SALES

COST OF SALES
2,059,114
1,799,201
259,913
1,621,166
437,948

TOTAL COST OF SALES
2,059,114
1,799,201
259,913
1,621,166
437,948
AS0/0 OF REVENUE

26.52%

26.04%

0.48%

27.27%
-0.76%

GROSS MARGIN
5,706,517
5,111,481
595,036
4,322,800
1,383,717

PAYROLL

PAYROLL
3,233,861
3,150,217
83,644
2,785,254
448,607

TOTAL PAYROLL
3,233,861
3,150,217
83,644
2,785,254
448,607
AS0/0 OF REVENUE

41.64%

45.58%
-3.94%

46.86%
-5.22%

OPERATING EXPENSES

OPERATING EXPENSES
961,304
860,484
100,820
700,716
260,587

TOTAL OPERATING EXPENSES
961,304
860,484
100,820
700,716
260,587
AS % OF REVENUE

12.38%

12.45%
-0.07%

11.79%

0.59%

NET OPERATING INCOME
1,511,352
1,100,780
410,572
836,830
674,523
AS0/0 OF REVENUE

19.46%

15.93%

3.53%

14.08%

5.38%

ROU LEASE DEPRECIATION EXPENSES

ROU LEASE DEPRECIATION EXPENSES
-
386
(386)
2,887
(887)

TOTAL ROU LEASE DEPRECIATION EXPENSES
-
386
(386)
2,887
(2,887)
AS % OF REVENUE

0.00%

0.01%
-0.01%

0.05%
-0.05%

NET INCOME AFTER DEPRECIATION
AS % OF REVENUE
PAYROLL STATS:

FULL TIME EQUIVILANCE
1,511,352

19.46%

57.66 1,100,395

15.92%

57.38 410,958

3.54%

0.28 833,943

14.03%

54.66 677,410

5.43%

3.00

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

VUE GRILLE & BAR
2023-24 Budget 2022-23 Actuals
Variance 2021-22 Actuals
Variance
COVERS

COVERS - RESTAURANT
57,911
55,599
2,312
51,148
6,763

COVERS - RESIDENT
7,678
6,980
698
6,229
1,449

TOTAL COVERS
65,589
62,579
3,010
57,377
8,212

AVERAGE PER COVER

45.09 43.10

1.98 40.12

4.97 REVENUES

FOOD & BEVERAGE REVENUE
2,957,306
2,697,403
259,903
2,301,819
655,487

TOTAL REVENUES
2,957,306
2,697,403
259,903
2,301,819
655,487

COST OF SALES

COST OF SALES
872,255
841,242
31,013
787,937
84,318

TOTAL COST OF SALES
872,255
841,242
31,013
787,937
84,318
AS % OF REVENUE

29.49%

31.19%
-1.69%

34.23%
-4.74%

GROSS MARGIN
2,085,051
1,856,161
228,890
1,513,881
571,169

PAYROLL

PAYROLL
1,478,380
1,859,725
(381,345)
1,703,996
(225,616)

TOTAL PAYROLL
1,478,380
1,859,725
(381,345)
1,703,996
(225,616)
AS % OF REVENUE

49.99%

68.95%
-18.95%

74.03%
-24.04%

OPERATING EXPENSES

OPERATING EXPENSES
356,810
332,418
24,392
295,533
61,278

TOTAL OPERATING EXPENSES
356,810
332,418
24,392
295,533
61,278
AS % OF REVENUE

12.07%

12.32%
-0.26%

12.84%
-0.77%

NET OPERATING INCOME
249,861
(335,982)
585,843
(485,647)
735,508
AS % OF REVENUE

8.45%
-12.46%

20.90%
-21.10%

29.55%

ALLOCATED PAYROLL

ALLOCATED PAYROLL
-
(735,426)
735,426
(695,435)
695,435

TOTAL ALLOCATED PAYROLL
-
(735,426)
735,426
(695,435)
695,435
NET INCOME W/ ALLOCATED PAYROLL 249,861 399,444 (149,583) 209,788 40,073 AS % OF REVENUE

8.45%

14.81%
-6.36%

9.11%
-0.67%
PAYROLL STATS:

FULL TIME EQUIVILANCE

29.43 35.18
(5.75) 34.20
(4.77)

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

BEVERAGE CARTS
2023-24 Budget
2022-23 Actuals Variance
2021-22 Actuals Variance
COVERS
COVERS - BEV CART/SNACK BAR 76,507
76,057 450
68,841
7,666

TOTAL COVERS
76,507
76,057
450
68,841
7,666

AVERAGE PER COVER

9.90 8.62

1.28 9.05

0.84 REVENUES

FOOD & BEVERAGE REVENUE
757,041
655,517
101,525
623,138
133,903

TOTAL REVENUES
757,041
655,517
101,525
623,138
133,903

COST OF SALES

COST OF SALES
178,889
156,335
22,554
142,584
36,304

TOTAL COST OF SALES
178,889
156,335
22,554
142,584
36,304
AS % OF REVENUE

23.63%

23.85%
-0.22%

22.88%

0.75%

GROSS MARGIN
578,153
499,182
78,971
480,554
97,599

PAYROLL

PAYROLL
209,204
145,938
63,266
158,367
50,838

TOTAL PAYROLL
209,204
145,938
63,266
158,367
50,838
AS % OF REVENUE

27.63%

22.26%

5.37%

25.41%

2.22%

OPERATING EXPENSES

OPERATING EXPENSES
81,103
70,427
10,675
69,321
11,781

TOTAL OPERATING EXPENSES
81,103
70,427
10,675
69,321
11,781
AS % OF REVENUE

10.71%

10.74%
-0.03%

11.12%
-0.41%

NET OPERATING INCOME
287,846
282,816
5,029
252,866
34,980
AS % OF REVENUE

38.02%

43.14%
-5.12%

40.58%
-2.56%

ALLOCATED PAYROLL

ALLOCATED PAYROLL
-
147,829
(147,829)
132,032
(132,032)

TOTAL ALLOCATED PAYROLL
-
147,829
(147,829)
132,032
(132,032)

NET INCOME W/PAYROLL ALLOCATED
287,846
134,987
152,858
120,834
167,012
AS % OF REVENUE

38.02%

20.59%

17.43%

19.39%

18.63%
PAYROLL STATS:

FULL TIME EQUIVILANCE

4.31 3.14

1.17 3.46

0.85

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

BANQUET & CATERING
2023-24 Budget 2022-23 Actuals
Variance 2021-22 Actuals
Variance
COVERS

COVERS - BANQUET
19,125
19,037
88 25,251
(6,126)

TOTAL COVERS
19,125
19,037
88 25,251
(6,126)

AVERAGE PER COVER
137.64
125.68

11.96 97.02

40.62 REVENUES

FOOD & BEVERAGE REVENUE
2,632,304
2,392,566
239,737
2,449,750
182,553

TOTAL REVENUES
2,632,304
2,392,566
239,737
2,449,750
182,553

COST OF SALES

COST OF SALES
729,219
590,824
138,395
579,301
149,918

TOTAL COST OF SALES
729,219
590,824
138,395
579,301
149,918
AS % OF REVENUE

27.70%

24.69%

3.01%

23.65%

4.06%

GROSS MARGIN
1,903,084
1,801,742
101,342
1,870,449
32,636

PAYROLL

PAYROLL
771,330
731,037
40,293
753,248
18,082

TOTAL PAYROLL
771,330
731,037
40,293
753,248
18,082
AS % OF REVENUE

29.30%

30.55%
-1.25%

30.75%
-1.45%

OPERATING EXPENSES

OPERATING EXPENSES
258,649
253,852
4,797
278,681
(20,032)

TOTAL OPERATING EXPENSES
258,649
253,852
4,797
278,681
(20,032)
AS % OF REVENUE

9.83%

10.61%
-0.78%

11.38%
-1.55%

NET OPERATING INCOME
873,105
816,853
56,252
838,520
34,585
AS % OF REVENUE

33.17%

34.14%
-0.97%

34.23%
-1.06%

ALLOCATED PAYROLL

ALLOCATED PAYROLL
-
434,624
(434,624)
476,568
(476,568)

TOTAL ALLOCATED PAYROLL
-
434,624
(434,624)
476,568
(476,568)

NET INCOME W/ALLOCATED PAYROLL
873,105
382,229
490,876
361,952
511,153
AS % OF REVENUE

33.17%

15.98%

17.19%
14,.78%

18.39%
PAYROLL STATS:

FULL TIME EQUIVILANCE

11.13 (0.02) 13.28
(2.17)

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY
FOOD TRUCK/CAFE 36
2023-24 Budget 2022-23 Actuals
Variance 2021-22 Actuals
Variance
COVERS

COVERS - FOOD TRUCK
76,507
74,938
1,569
-
76,507

TOTAL HOURS AND COVERS
76,507
74,938
1,569
-
76,507

AVERAGE PER COVER

5.41 5.15

0.26 #DIV/0!
#DIV/O!

REVENUES

FOOD & BEVERAGE REVENUE
413,875
385,958
27,917
446,495
(32,620)

TOTAL REVENUES
413,875
385,958
27,917
446,495
(32,620)

COST OF SALES

COST OF SALES
103,617
94,972
8,645
111,343
(7,726)

TOTAL COST OF SALES
103,617
94,972
8,645
111,343
(7,726)
AS % OF REVENUE

25.04%

24.61%

0.43%

24.94%

0.10%

GROSS MARGIN
310,259
290,987
19,272
335,152
(24,893)

PAYROLL

PAYROLL
180,571
184,790
(4,219)
118,299
62,272

TOTAL PAYROLL
180,571
184,790
(4,219)
118,299
62,272
AS % OF REVENUE

43.63%

47.88%
-4.25%

26.50%

17.13%

OPERATING EXPENSES

OPERATING EXPENSES
41,049
38,441
2,608
47,556
(6,508)

TOTAL OPERATING EXPENSES
41,049
38,441
2,608
47,556
(6,508)
AS % OF REVENUE

9.92%

9.96%
-0.04%

10.65%
-0.73%

NET OPERATING INCOME
88,639
67,756
20,883
169,297
(80,658)
AS % OF REVENUE

21.42%

17.56%

3.86%

37.92%
-16.50%

NET OPERATING INCOME W/AMENITY
88,639
67,756
20,883
169,297
(80,658)
AS % OF REVENUE

21.42%

17.56%

3.86%

37.92%
-16.50%

ALLOCATED PAYROLL

ALLOCATED PAYROLL
-
76,590
(76,590)
86,836
(86,836)

TOTAL ALLOCATED PAYROLL
-
76,590
(76,590)
86,836
(86,836)
NET INCOME W/ ALLOCATED PAYROLL 88,639 (8,834) 97,473 82,461 6,178 AS % OF REVENUE

21.42%
-2.29%

23.71%

18.47%

2.95%
PAYROLL STATS:

FULL TIME EQUIVILANCE

3.39 3.95
(0.56)

3.07 0.32

INDIAN WELLS GOLF RESORT
2023-2024 BUDGET SUMMARY

SHOTS IN THE NIGHT
2023-24 Budget 2022-23 Actuals Variance 2021-22 Actuals Variance
1,109

SITN ACTIVITY HOURS
3,807
2,699
871
2,936

TOTAL HOURS

AVERAGE PER HOUR
3,807
264.02
1 109
2,936
123.07
2,699
871
288.77
(24.75)
140.95

REVENUES

FOOD & BEVERAGE REVENUE
619,855
404,237
215,619
-
619,855

SHOTS IN THE NIGHT REVENUES
385,250
375,001
10,249
122,764
262,486

TOTAL REVENUES
1,005,105
882,341
779,237
225,868
122,764

COST OF SALES

COST OF SALES
175,135
115,827
59,307
-
175,135

TOTAL COST OF SALES
AS % OF REVENUE
175,135

17.42%
175,135

17.42%
115,827
59,307
-

14.86%

2.56%

0.00%

GROSS MARGIN
829,971
707,207
663,410
166,560
122,764

PAYROLL

PAYROLL
304,655
305,110 (455)
51,343
253,312

TOTAL PAYROLL
AS % OF REVENUE
304,655

30.31%
253,312
-11.51%
305,110 (455)
51,343

39.15%
-8.84%

41.82%

OPERATING EXPENSES

OPERATING EXPENSES
223,693
166,594:_
57,099
16,878
206,815

TOTAL OPERATING EXPENSES
AS % OF REVENUE
223,693

22.26%
206,815

8.51%
166,594
57,099
16,878

21.38%

0.88%

13.75%

NET OPERATING INCOME
AS % OF REVENUE
301,623

30.01%
247,080
-14.42%
191,706
109,917
54,543

24.60%

5.41%

44.43%

NET OPERATING INCOME W/AMENITY
AS % OF REVENUE
301,623

30.01%
247,080
-14.42%
191,706
109,917
54,543

24.60°72

5.41%

44.43%:

ALLOCATED PAYROLL

ALLOCATED PAYROLL
-
18,861
(18,861)
9,099
(9,099)

TOTAL ALLOCATED PAYROLL

NET INCOME W/ ALLOCATED PAYROLL
AS % OF REVENUE
-
301,623

30.01%
9 099
256 179
-7.01%
18,861
172,844

22.18%
(18,861)
128,778

7.83%
9 099
45 444

37.02%
PAYROLL STATS:

FULL 77M5EOUIVILANCE

6.59 5.98

0.61 1.98

4.61

TROON
Indian Wells Golf Resort
Capital Expenditures 2023/24
Cateoory
Item Name
Budoet
Budget
301-23
Budoet
Aug -23
Budoet
Sep -23
Budget
0d'-23
Budoet
Nov -23
Budget
Dec -23
Budget
San -24
Budoet
Feb -24
Budoet
Mar -24
Budget
Apr -24
Budoet
May -24
Budget
Sun -24
TOTAL

CAPITAL REPLACEMENT

BUILDING AND STRUCTURES
$ 29,300.00
$
-
$ 14,300.00
$ -
$ 15,000.00
$ -
$ •$ •$ -
$ -
$ -
$ -
$ -
$ 29,300.00
Golf Maintenance Bldg- Roof Repair
$ 15,000.00
$ 15,000.00
$ 15,000.00
Replace north area/tee line Pavers
Replace sinking pavers
$ 14,300.00
$ 14,300.00
$ 14,300,00
$
§
$
$
$

CLUBHOUSE EQUIPMENT (KITCHEN/ PROSHOP)
§ 20,000,00
$ 20,000.00
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ 20,000.00
Kitchen Exhaust/Make up air fans
$ 20,000.00
$
20,000.00
$ 20,000.00
$
$
$
$

GOLF COURSE EQUIPMENT (ANYTHING OUTSIDE)
$ 658,419.00
$
-
$ 172,902.00
$ 151,493.00
$ 16,200.00
$ 189,925.00
$ 44,823.00
$ -
$ -
$ -
$ -
$ -
$ 83,076.00
$ 658,419.00
Sitting Bench. for SITN/putting Green
$ 16,200.00
$ 16,200.00
§ 16,200.00
Driving Range Safety Barrier netting
$ 39,800.00
$ 39,800.00
$ 39,800.00
Power for Tee line 0 driving range + Pavers
$ 23,619.00
$ 23,619.00
$ 23,619.00
New Mats for the Range/Addl Turf
$ 54,125.00
54,125
$ 54,125.00
$
Toro Reelmaster 3100 D
Lease buy out
$ 26,745.00
$ 26,745.00
6 26,745.00
Toro Reelmaster 7000-d
Lease buy out
$ 56,331.00
$ 56,331.00
$ 56,331.00
Toro Work Trucks
4 trucks
$ 135,800.00
135,800
$ -
6 135,800,00
Buffalo Debris Blowers
4 Blowers
$ 47,015.00
47,015
$ 47,015.00
Sohn Deer 4052R Compact Tractor
$ 47,143.00
47,143
$ 47,143.00
John Deer 5060E Tractor
§ 55,125.00
55,125
$ 55,125.00
Debris Sweeper - Widenmann Super 600
$ 111,693.00
$ 111,693.00
$ 111,693.00
Superintendents Carts -Carry All 502
3 Carts
$ 44,823.00
S 44,823.00
$ 44,823.00
$
$
$
ADMINISIRA 77VE[ MARKETING
$ 133,80000
$ 21,550.00
8 -
$ 50,000.00
$ 50,00000
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ 12,250.00
$ 133,800,00
Moden full featured VOIP System
Phone system replacement
$ 12,250.00
$ 12,250.00
$ 12,250.00
Digital Sigange for Clubhouse Lobby
$ 21,550.00
$
21,550.00
§ 21,550.00
Property Signage
$ 100,000.00
$ 50,000.00
$ 50,000.00
$ 100,000.00
$
$

GOLF COURSE IMPROVEMENTS (SANDIRAPS/PUMPSTATATIONS/REMODEL) -
$
-
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
$

PAVILION ENHANCEMENTS
$ -
$
-
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$
$

STRATEGIC PLANNING -BUSINESS SEGMENTS
$ 108 979.00
$ 8 333.00
$ 8 333.00
$ 8 333.00
8 8 333.00
$ 8 333.00
$ 8 333.00
$ 8 333.00
$ 8 333.00
$ 8 333.00
$ 8 333.00
$ 17 316.00
$ 108 979.00
$
Contingueny Fund - Emergency
$ 108,979.00
$
8,333.00
8 8,333.00
8 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 17,316.00
§ 108,979.00
$
Subtotal
$ 950,498.00
$ 41,550.00
$ 195,535.00
$ 209,826.00
$ 89,533.00
$ 198,258.00
$ 53,156.00
$ 8,333.00
$ 8,333.00
$ 8,333.00
$ 8,333,00
$ 8,33300
$ 112,642.00
$ 950,498.00
Available Capita/:
$ 950.498.00
Variance
0

Indian Wells Golf Resort
Budget 2023/2024 Assumptions
Department
Consolidated
Budget 2023/24
Prior Year Variance
%
Total Revenues
(Less) Amenity Fee
Adjusted Revenues
$
$
22,349,751 $ 20,770,750 $ 1,579,001 7.6%
(2,736,884) $
19,612,867 $ 18,039,803 $ 1,573,064 8.7%
(2,730,947) $ (5,937) 0.2%
NOI
$ 3,740,198 $ 3,217,956 $ 522,242 16.2%
$ 1,003,314 $ 487,009 $ 516,305
Adjusted NOI w/o Amenity Fee
PROFIT % 5.1% 2.7% $ 0 89.5%
33% flow thru

32.8% Flow thru
Consolidated

IWGR Golf Agronomy
2023/2024 Budget Assumptions
GOLF
Rounds
Rate
Budget 2023/24
76,507
Prior Year
76,057
Variance
450 0.6% 450 Rounds up - August, Sept, June (non-resident rounds) Between 18 hole prime, non prime and Troon
123.51 $ 116.56 $ 6.95 6.0% 7% net increase, except Resident, Guest and PGA cart Resulting in 6% overall rate increase
Green Fees $ 9,449,314 $
Group Services $ 155,620 $
Range, Rental, Other $ 277,290 $
Resident Recapture $ 2,633,146 $
8,865,359 $ 583,955 6.6% Increase 6.58% based on rounds and rate 151,613 $ 4,007 2.6% $10 per tournament round - Full Year 267,764 $ 9,526 3.6% 3% increase - $/round
2,627,210 $ 5,936 0.2% Flat to prior year - Difficult to budget based on new calculation Rate variance by hour of day, Day of week, by course
Total Golf Revenues
12,619,108 $
12,015,682 $ 603,426 5.0%
Golf Net W/O Amenity Fee
9,985,962 $
9,388,472 $ 597,490 6.4%
Total Payroll $ 1,666,224 $ 1,586,832 $ 79,392 5.0% FTE's flat year over year - 30.25 vs 30.23 % o revenue 13.2% 13.2% No Valet July and August
Assumption that minimum wage will increase to $16/hr-Jan 1 Marissa 7% adjustment - full year additional $2000
Travel Expense $ 4,700 $ 108 $ 4,592 4251.9% Troon Leadship conf May; PGA Show Jan Advertising $ 332,437 $ 330,509 $ 1,928 0.6%
R & M Carts $ 33,000 $ 26,252 $ 6,748 25.7% Softwater water system install - $1000/mo

TOTAL NOI LESS RESIDENT FEE
7,294,524 $
(4,534,573) $
6,801,134 $ 493,390 7.3%
(4,244,500) $ (290,073) 6.8%

TOTAL AGRONOMY NOI

ACADEMY - NOI
30 $ (135,762) $ 135,792 -100.0%

NET NOI GOLF/MAINENANCE
TOTAL GOLF/MAINTENACE %
2,759,981 $
2,420,872 $ 339,109 14.0%

27.64%

25.79%

AGRONOMY
Total Expense
$ (4,534,573) $
(4,244,500) $ (290,073) 6.8%
Payroll & Related
Seminars
R & M Equipment
R & M Pump Station
Contract Labor
Fertilizer & Chemicals
Utilties
$ 2,387,471 $
$ 2,300 $
$ 170,424 $
$ 19,332 $
$ 452,576 $
$ 160,103 $
$ 694,505 $
2,207,991 $ 179,480 8.1% 37 FTE »> to 38 in November» 39 in January» 40 FTE in April 160 $ 2,140 1337.5% GCSAA for Nick, Tylor, Teo, DPR - and Education 159,277 $ 11,147 7.0% 7% increase for worn equipment
11,791 $ 7,541 64.0% Cloudburst scheduled maintenance
397,889 $ 54,687 13.7% Lake Maintenance $$58k
151,723 $ 8,380 5.5% Actuals + increases from 3-20%
667,730 $ 26,775 4.0%

IWGR Merchandise
2023/2024 Budget Assumptions
Rounds
Budget 2023/24 Prior Year Variance
76,623 76,173 450 0.6%
Total Merchandise Revenues $ 1,720,937 $ 1,638,844 $ 82,093

5.0% 4% ADR increase + Additional Rounds
Merchandise ADR
$ 22.46 $ 21.51 $ 0.95 4.4%
Total Payroll & Related
Travel Expense
$ 240,338 $ 218,446 $ 21,892 10.0% Hourly rate adjustment $16 > $17 > $18 $ 2,000 $ - $ 2,000 100.0% PGA Show Jan

TOTAL NOI
$ 525,182 $ 521,293 $ 3,889 0.7%
NOI % 30.5%

31.8% -1.3%
City Target 28-32%

IWGR Building Maintenance.G A
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance

TOTAL BLDG MAINT EXPENSE
$ 1,159,247 $ 1,109,311 $ 49,936 4.5%
City Target $ 1,053,845.45
Difference to Target $ (105,402)
City requested 5% decrease year over year
Total Payroll & Related
Utilties
$ 623,579 $ 573,731 $ 49,848 8.7% Additional salary added mid Oct 2023 $20k $ 403,019 $ 392,444 $ 10,575 2.7% Slight increase year over year *Please note - Budget for 22/23 is $1,142,525
*Flat lined operating expnses with no price increases budgeted Budget 2023/24 Prior Year Variance

TOTAL G & A EXPENSE
$ 2,530,020 $ 2,342,658 $ 187,362 8.0%
$ 2,225,525.10
City Target
Difference to Target $ (304,495)
City requested 5% decrease year over year
Other Revenue $ 29,019 $ 38,565 $ (9,546) -24.8% Will not have refund in new year Total Payroll & Related $ 1,592,506 $ 1,421,894 $ 170,612 12.0% Inventory supervisor added 9/1- $7k Sales Managers rate adjustment 10.21.23 - 4K each;
Sales manager position empty 1 month
Acct mgr/Asst rate adjust $4/hr - $9k per year
Sales Admin positions added -+ 1 july; +1 Sept (Addl $6 k/year) Salary rate adjustments
Learning & Development Mgr - 7/1 $90k
Commissions - Decreased 1/2 with eliminated position ($50K) Additional Conceirge/Admin position
Employee Recognition $ 69,269 $ 56,771 $ 12,498 22.0% Employee Wellness & Retention program Recruiting & Relation $ - $ 78,037 $ (78,037) -100.0%
Other Professional fees $ 23,200 $ 90,067 $ (66,867) -74.2% Security for parking lot during peak periods Computer Related $ 225,638 $ 100,792 $ 124,846 123.9% $118k computer /server repacement, Troon email accounts, cedar creek Office Supplies $ 24,156 $ 29,476 $ (5,320) -18.0% Do not need expense for Receiving Cage Travel $ 23,800 $ 16,983 $ 6,817 40.1% $1500 Qtrly trip to Troon; Leadership conference: Troon onsite visits Management Fee $ 337,402 $ 327,574 $ 9,828 3.0% Annual increase

IWGR - F B Consolidated
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance %
Covers 237,960 233,962 3,998 1.7%
ADC $ 32.63 $ 29.54 $ 3.10 10.5%
Total Revenues
$ 7,765,631 $ 6,910,682 $ 854,949 12.4%
TOTAL NOI $ 1,511,352 $ 1,100,578 $ 410,774 37.3%
PROFIT % 19.5% 15.9% $ 0 22.2%
48% Flow thru

Vue Restaurant
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance
Total Covers
Resident Covers
ADC
65,589 62,579 3,010 4.8% Summer covers adjusted, 3.5% increase balance of the year 7,678 6,980 698 10.0% 10% increase Per Directive of COIW

43.62 $ 41.50 $ 2.12 5.1% 3% increase ADC starting oct 1 Total Revenues
$ 2,957,306 $ 2,697,403 $ 259,903 9.6% Based upon increase of covers and ADC Cost of Sales
Payroll & Related
Operating Expenses
% of Revenue
% of Revenue
% of Revenue
872,255 $

29.5%
1,478,380 $

50.0%
356,810 $

40.9%
841,242 $ 31,013 3.7%

31.2% Xfer 5% of Food COS to Banquets
1,124,299 $ 354,081 31.5% Elimination of Allocated payroll; .5% increase in payroll taxes for declared tips

41.7%
332,418 $ 24,392 7.3%

39.5%

TOTAL NOI
$ 249,861 $ 399,444 $ (149,583) -37.4%
NOI% 8.4% 14.8% $ (0) -42.9%

Beverage Cart
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance
Total Covers/Rounds 76,623
ADC
76,173 450 0.6%
$ 9.88 $ 8.61 $ 1.27 14.8%
Total Revenues
$ 757,041 $ 655,517 $ 101,524 15.5% 6% ADC increase + Cool Cart ($18k rental + $160/day for 8 mos. = $38.4K) Cost of Sales
Payroll & Related
Operating Expenses
% of Revenue
% of Revenue
% of Revenue
178,899 $ 156,335

23.6% 23.8%
209,204 $ 293,767

27.6% 44.8%
81,092 $ 70,428

45.3% 45.0%
22,564 14.4%
(84,563) -28.8% Elimination of Allocated payroll; Added .33 FTE of mgr; .5 FTE Supervisor 10,664 15.1%

TOTAL NOI
$ 287,846 $ 134,987 $ 152,859 113.2%
NOI% 38.0% 20.6% $ 0 84.6%

Banquet Operation
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance %
Total Covers
ADC
$
19,125 19,037 88 0.5% Currently trending behind prior year however added 1,000 covers for Corporate Events 103.89 $ 95.01 $ 8.88 9.3% Based upon current pace, addl booking needed, and avg check for Corp events @ $100 Total Revenues
$ 2,632,304 $ 2,392,566 $ 239,738 10.0%
Cost of Sales
Payroll & Related
Operating Expenses
% of Revenue
% of Revenue
% of Revenue
$
$
$
729,219 $

27.7%
771,330 $

29.3%
258,650 $

9.8%
590,824 $ 138,395 23.4% Brought Food COS up from 17% to 22% - Xfer savings to Vue

24.7%
1,165,661 $ (394,331) -33.8% Elimination of Allocated payroll

48.7%
253,852 $ 4,798 1.9%

10.6%

TOTAL NOI
$ 873,105 $ 382,229 $ 490,876 128.4%
NOI% 33% 16.0% $ 0 107.6%

Food Truck/Cafe 36
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance
Total Covers/Rounds
ADC $ 5.37 $ 5.11 $
76,623 76,173 450 0.6%

0.26 5.1% Based on additional rounds and 5% increase ADC Total Revenues $ 413,875 $ 385,958 $
27,917 7.2%
Cost of Sales
Payroll & Related
Operating Expenses
% of Revenue
% of Revenue
% of Revenue
103,617 $ 94,972 $ 8,645 9.1%

25.0% 24.6%
180,571 $ 261,380 $ (80,809) -30.9% Elimination of Allocated payroll; adding .33 FTE mgr; .5 FTE Supervisor

43.6% 67.7%
40,249 $ 39,407 $ 842 2.1%

9.7% 10.2%

TOTAL NOI
$ 88,639 $ (8,834) $ 97,473 -1103.4%
NOI% 21.4% -2.3% $ 0 -1035.7%

Shot in the Night
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance
Hours Hitting Bay/Putting 3,710 2,644 1,066 40.3% Opens Oct 15; +2 addl bays; local TV Adver Group hours 97 55 42 76.4%
Total $/hr spend
Social $/hr spend
Group $/hr spend
Golf Revenues
F & B Revenues
270.94 $ 294.74 $ (23.80) -8.1% Decrease due to know ice skating for 2023/2024 385,250 $
619,855 $
375,001
404,237
$ 10,249
$ 215,618

2.7% Eliminated Ice Skating $126k; increase rate to $75/hr

53.3% Based on spend per hour Social & Group
Added theme nights with Entertainment
Total Revenues
$ 1,005,105 $ 779,238 $ 225,867 29.0%
Cost of Sales
Payroll & Related
Operating Expenses
% of Revenue
% of Revenue
% of Revenue
$ 175,135 $

28.3%
$ 304,655 $

30.3%
$ 218,708 $

21.8%
Computer & Related $
Allocated Expense $
Entertainment $
115,827 $ 59,308 51.2%

28.7% % based on F & B Revenues only
305,110 $ (455) -0.1% Elimination of Allocated payroll; going from 1 FTE to .33 FTE mgr;

39.2%
166,594 $ 52,114 31.3%

21.4%
54,384 $ 29,398 $ 24,986 85.0% Top Tracer full year + 2 addl bays 75,077 $ 53,803 $ 21,274 39.5% Increase % of revenue: opens Oct rather than Nov 49,500 $ 50,555 $ (1,055) -2.1% No NYE event, however added DJ 3 days/week

TOTAL NOI
301,623 $
191,706 $ 109,917 57.3%
NOI%
NOITARGET %

30.0%

24.6% $
0 22.0%

F B Admin
2023/2024 Budget Assumptions
Budget 2023/24 Prior Year Variance %
TOTAL F & B Admin EXPENSE
$ 289,721 $ $ 289,721
All operating expenses are allocated by to outlets
Payroll & Related $ 289,721 $ - $ 289,721
Operating Expenses $ 680,518 $ 622,661 $ 57,857 9.3%
China, Glass & Silver $
Operating Supplies $
Credit Card Fees $
Includes F & B Director, Admin, and Earl
39,996 $ 10,716 $ 29,280 273.2% Additional par stock needed 154,175 $ 153,071 $ 1,104 0.7% Based 2% of revenue
192,724 $ 173,354 $ 19,370 11.2% Based upon revenues 2.5%

ATTACHMENT #3

I N D I AN WELLS CI TY COU N CI L
June 1 , 2023
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Fiscal Year 2023-24 Golf Resort Operating Budget and Capital I mprovement Plan
RECOMMENDED ACTI ON:

City Council REVI EWS, DI SCUSSES, and APPROVES or APPROVES AS AMENDED the Golf Resort Operating Budget and Capital Improvement Plan from July 1, 2023, through June 30, 2024.

BACKGROUND:

The Golf Resort budget, as submitted, includes $19.6 million (net of Golf Subsidy) in operating revenues and $18.6 million in operating expenditure. Capital replacements total $950,498. The after -capital net operating profit at the Golf Resort is projected at $53,593. Appropriations for operational costs are balanced in relation to projected revenue sources and do not rely on one-time revenue sources or reserves.

The budget implements the Council's priorities and strategic goals, provides a financial plan that continues delivering first-rate services, and is responsive to the community's needs. In addition, developing a stand-alone Golf Resort budget book addresses the Community's needs to improve communication and transparency.

In addition to providing a detailed budget by profit centers, the new Golf Resort Budget Book includes the business plan, and a look into the new marketing plan. Capital funding was also updated and is now broken down into two separate segments, capital repairs and replacements managed by Troon and all other capital funding managed by the City Council.

Summary of Strategic Goals and Priorities
The budget implements the Council's priorities and strategic goals, provides a financial plan that continues delivering first-rate services, and is responsive to the community's needs. The focus of a strategic plan is to outline the goals of the City Council for the community as a whole/organization over some time (one, three, or five years are typical).

A Summary of Significant City Goals for the upcoming budget cycle is as follows:

Goals and Priorities
• Profitable before the amenity subsidy and after capital and maintenance expenses. • Develop strategies to increase customers and check averages in all operations (e.g., Vue restaurant, banquets, golf, etc.).
• Identify opportunities to improve efficiency and operations to be more cost- effective while maintaining quality.
• Develop a comprehensive marketing strategy that promotes the Indian Wells Golf Resort as a golf and special events destination for visitors, including local and drive markets.
o Improve advertising by adding Top Tracer to Shots in the Night and the Academy.
• Expand partnerships with local hotels to increase customers at the Indian Wells Golf Resort for golf, dining, and special events.
• Focus on driving more golf rounds and increasing banquets at the Indian Wells Golf Resort. These are the top two profit centers for the golf resort. • Examine possible rebranding of the Vue restaurant's concept and menu, including a celebrity chef concept that targets all customers (e.g., golfers, residents, hotel guests, and local drive market).
• Consider golf resort operating profits and energy savings from the new solar project to fund future capital needs.
• Remove allocated payroll.
o Direct charges only based on the actual timecard.
• Provide $3.7 million (gross surplus) to repay loans to the City's General Fund. o Based on current projections, Golf Loans are scheduled to be fully repaid to the City's General Fund by FY 2024/25.

• Provide Financial Performance targets in the form of net income goals. Based on the budget, the ability to meet the Financial Performance targets is estimated in the table below.

Indian
Projected Net Income
Wells Golf Resort
Goal (%) by Department
Met Goal
Minimum
Goal
Maximum
Goal
Budgeted
Goal
Golf, including golf maintenance

25.0%

30.0%

27.6%
Yes
Merchandise

27.0%

33.0%

30.5%
Yes
F&B All Outlets Consolidated

15.0%

20.0%

19.5%
Yes
Vue

8.0%

12.0%

8.4%
Yes
Vue - Cost of Sales

30.0%
n/a

29.5%
Yes
Vue - Labor

50.0%
n/a

50.0%
Yes
Beverage Carts

38.0%

42.0%

38.0%
Yes
Banquets

30.0%

35.0%

33.0%
Yes
Food Truck

30.0%

35.0%

21.6%
No
Shots in the Night

30.0%

35.0%

30.0%
Yes
General &Administrative
Decrease 5% from last
year actual
Increased

5.3% to Last
Year Actual
Missed City
Target by
$242k
Building Maintenance
Decrease 5% from last
year actual
Increased

4.5% to Last
Year Actual
Missed City
Target by
$100k
• Implement strategies to increase customers and check averages. • Identify opportunities to improve efficiency and operations to be more cost-effective while maintaining quality.
• Consider golf resort operating profits and energy savings from the new solar project to fund future capital needs.

Budget Overview
The Budget Document comprises both the Annual Operating Budget and the Capital Budget. The Operating Budget is the total budget used to finance all day-to-day operations and obligations of the Golf Resort. The fiscal year 2023/24 Adopted Budget totals $18.6 million for all Golf operations.

Indian Wells Golf Resort
Consolidated Budget Summary
Fiscal Year
2023-24
Budget
Rounds
76,507
Covers
237,728
Total Revenues (Net of Golf Subsidy)
19,613,644
Cost of Sales
3,177,065
Payroll
9,858,197
Operating Expenses
5,574,291
Total Operating
18, 609, 553
Net Operating Income before Capital
1,004,091
Capital Replacements
950,498
Net Operating Income After Capital
53,593
Capital Budget Overview
The capital improvement plan includes sixteen projects budgeted for $950,498.

Capital Category
Buildings And Structures
Clubhouse Equipment
Golf Course Equipment
Signage and Wayfinding
Emergency
Total Capital Replacements
Total Percentage
29,300 3.1%
20,000 2.1%
658,419 69.3%
133,800 14.1%
108,979 11.5%
950,498 100.0%

ATTACH M ENT:
• Attachment 1_Golf Resort Budget Book
• Attachment 1_Golf Resort Implementation Goals and Deliverables

ATTACHMENT #4
Indian Wells Golf Resort
Fiscal Year 2023-24 Budget
Implementation Goals and deliverables

1. Profitability
a. Golf Resorts should be operated profitably before the Golf Amenity Subsidy and after capital expenditures.

2. General Fund Amenity Subsidy
a. Specific to the budget and monthly financial statements, the Amenity Subsidy shall be displayed as follows:
i. Golf Amenity subsidy — below the Net Income Line
ii. F&B and Merchandise — included in the Revenue line

3. Allocated payroll.
a. No allocated payroll based on revenue.
b. Each profit center shall be based on the staff working in the profit center.

In Troon's terminology, this is known as direct payroll. c. The Consolidated summaries in Golf and F&B and the Consolidated Financial Report shall contain all payroll costs required to operate the programs.
d. Remove allocated payroll lines from the budget and the monthly financial statements.
i. Direct payroll only.

4. Projected Net Operating Income by Department
a. As a Goal, the Budget should project Net Income as a % of Revenue as follows:
i. Golf, including golf maintenance: 25% to 30%
ii. Merchandise: 27% to 33%
iii. VUE: 8% to 12%

1. Cost of sales goals around 30%

2. Labor goals around 50%
iv. Beverage Carts: 38% to 42%
v. Banquets: 30% to 35%
vi. Food Truck & SITN: 30% to 35%
vii. These expectations exclude costs associated with building maintenance and G&A and are calculated to maintain profitability before the golf amenity subsidy and after capital.

5. Operating strategies incorporated into the new budget. a. Operate as a profitable business every year.
i. This could include limiting operating times and services during unprofitable periods.

ii. Identify opportunities to reduce operating losses during the first half of the fiscal year.
iii. Develop a worst -case scenario budget for the period June through September.
b. Evaluate COS and labor controls consistent with brand standards and revenue expectations.
c. Develop strategies to implement efficiencies to decrease G&A and building maintenance and golf maintenance costs. The savings goal is 5%.

6. Capital Budgeting:
a. Capital budget is limited to the replacement of existing equipment. b. The City Council approves all other capital improvements. i. An initial ROI analysis with preliminary figures will be included for each new capital project for Council consideration as deemed appropriate.
ii. If Council provides investigative approval, the ROI analysis will be restated as design and construction figures are confirmed.

7. Development of the New Concepts, the Business Plan, and the Marketing Plan a. These plans, at a minimum, should include strategies to capture the following:
i. Protect the Brand — we need to attract the right kind of new rounds and covers. Maintain the golf rate.
ii. Expand summer and shoulder seasons.
iii. Drive additional golf rounds in summer and shoulder seasons. iv. Increase VUE covers annually.

1. Increase resident covers by 10%

2. Increase golfer use by 30%.

3. Develop a VUE resident campaign.

4. Establish a local marketing campaign to encourage and attract new hotel guests, business lunches, and locals to support VUE.
v. Commit up to 1% of gross revenue to develop a local marketing plan budget.
b. New VUE concept
i. Work with Council to establish a new VUE identity.

Issues to Discuss with Troon
City Council Meeting:

Council Member Peabody
July 6, 2023
Loss in excess of $20.0M since first contract.

Over 50,000 customer count decrease since start of contract.

Failure on Troon's part to deal with serious Human Resource issues at IWGR. City manager not made aware of issues.
- Failure of Troon to achieve a reasonable profit on a $2.2M revenue increase through May.
- Failure to properly operate food facilities, particularly at the Vue. o Inconsistent standards of service.
o Inconsistent food quality.
o Incorrect positioning of Vue restaurant.
- Failure to prepare a realistic budget for period July 2022 —July 2023.

Did not deal with excessive labor cost in Vue (70.0%).

Implemented software system (Birch St.) in December at a cost of $30,000 plus lease contract replacing existing system (Pocketbook) — no knowledge of City or City CFO of this purchase. -Question on whether this should have been capitalized or not. Was,not on capital budget for 22/23. Existing system was working without issues.
- Marketing plan for 22/23 did not include any local marketing in spite of City significant new investment in new concepts of:
o Top Tracer
o Golf Academy
o Hitting Bays
o Shots in the Dark
- Failure to provide proper oversight.

Proposed Motion Regarding Budget
• Recognize IWGR did not meet the City's goal of preparing a worse case scenario for the period July- September.
• Approve the budget with the following adjustments:
o Delay any approval regarding computer related request until Kevin and Nick have the opportunity to review the request and_make a recommendation — bring back at September Council meeting. o Delay any consideration of hiring a Learning and Development Manager until a new GM has an opportunity to evaluate his needs. o Hold approval on property signage $100,000 (not street sign) until a clearer picture is available on what the signage will include - design, location, and cost.
o Reduce the contingency (capital budget) to $60,000 from $108,679.