REPORT TO DISTRICT RESIDENTS 2020

GRAND VALLEY RECREATION CENTER

398 ARROYO DRIVE

BATTLEMENT MESA, CO

970-285-9480

BATTLEMENT MESA GOLF CLUB

3930 N. BATTLEMENT PKWY

BATTLEMENT MESA, CO

970-285-7274

COMMUNITY PARK & PBM TRAIL

273 SIPPRELLE DRIVE

BATTLEMENT MESA, CO

Board of

Directors

Jerry Mohrlang

PresidentChuck Hall

VP

Ken Seidel

TreasurerAmber Palcer

Asst. VP

Adam L. Ford

Secretary

Facility

Directors

Chuck CurtisDirector

Golf Pro

Doug Choate

Director

Golf Course Superintendent and

Parks Manager

Samantha Smith

Director

Rec Center & Programs

dougc@battlementmesagolf.com970-285-7274

Battlement Mesa Golf Club3930 N. Battlement ParkwayBattlement Mesa, CO

ccurtis@battlementmesagolf.com970-285-7274

Battlement Mesa Golf Club3930 N. Battlement ParkwayBattlement Mesa, CO

Sam@gvrc.net970-285-9480

Grand Valley Recreation Center398 Arroyo DriveBattlement Mesa, CO

Contact Information:

Contact Information:

Contact Information:

The District is managed by Judy Bertrand, Metropolitan District Management.

Ms. Bertrand reports to the Board of Directors and the Facility Directors report to her.

Judy@Metro-District.com

Organizational Chart

FACILITY DIRECTORS

Chuck Curtis, Director-Golf ProDoug Choate, Director-Golf

Superintendent & Parks ManagerSamantha Smith, Director-Rec Center

& Programs

DISTRICT MANAGER

Judy Bertrand, Metropolitan District Management

BOARD OF DIRECTORS

Adam L. Ford, Secretary

Chuck Hall, Vice President

Jerry Mohrlang, President

Ken Seidel,

Treasurer

Amber Palcer.

Asst. VP

TAXPAYERS /CUSTOMERS

PARACHUTE-BATTLEMENT MESA

Facilities and Programs

Community ParkFree to entire District and public.

Western Town, playground equipment, benches, picnic tables and

grills.

Battlement Mesa Golf Club$1,100 Annual Membership (around $100 per month for

all you can play, or come in for a round of golf)

Grand Valley Recreation Center

In-District Rec Center Annual Membership

$204 per year (adult) & $180 per year (youth)

Programs & Activities Majority of sports programs $75 per season.

Fitness classes, swim lessons, & numerous programs

offered to public.

2019: District members: 2,370

2019: Out of district members: 60

2019: Silver Sneakers, Silver & Fit & Rec Rx:: 293

District offers 26 sports programs and

41 different activities/programs.

2019: 114 members and 15,119 rounds

2019: Pro shop sales - $97,000

Financial Information: Selected Comparative

2019 2016 Difference Comments

INCOME:

Property Tax Income $2,130,050 $3,804,581 -$1,672,512 -56% Loss

Operating Income $812,191 $706,665 $105,526 +15% increase

EXPENSE:

General & Admin. Exp. $299,807 $340,620 -$40,813 -12% Legal & election

Golf Course Ops. Exp. $178,972 $102,840 $76,132 +74% Irrigation repairs

Landscape Maint. & Parks $74,305 $54,038 $20,267 +38%

Sports Programs Ops. Exp $30,171 $18,028 $12,143 +67% New equipment

Rec Center Ops. Expense $165,350 $77,177 $88,173 +114% Repairs

Utilities $166,416 $150,292 $16,124 +11%

Total Operating Expense $484,396 $415,649 $68,747 +17% - Cumulative

Total Payroll Expense $917,636 $878,455 $39,181 +4%

Repairs & Maintenance $125,039 $36,386 $88,653 +244% Rec Center

Total Expense $1,874,787 $1,878,575 -$3,788 Flat – no increase

• The District performed $2,667,648 in needed capital expenditures in the 4 years it has assumed

responsibility for the golf course and rec center. In 2019 $506,000 was spent on capital projects,.

Since the transfer of the Rec Center to the Park & Rec District and the loss of $205 per home per year

in assessments, the Rec Center has lost close to $2,000,000. It is for this reason that Rec Center rates

have increased.

• The District has only increased Operating Income by 4% from 2018 to 2019, in large part due to the

Rec Center rates.

• The District has no long-term debt and does not desire to assume debt to fund operations or

perform capital projects.

• The District employed 81 employees in 2019 and provided work for dozens of independent

contractors, vendors and construction firms.

• The District seeks grant funding whenever possible for capital projects.

• The District is seeking a mill levy increase from 4 mills to 8 mills at the election on May 5, 2020 in

order to continue to make necessary repairs and maintenance and cover operating costs.

Residential Oil & Gas Others

PROPERTY TAXES BY PROPERTY TYPE

Residential properties (homeowners) only pay $116,714 to the District in property tax; or an average

of $27 per home per year.

$162,023 $116,714

$1,899,083

INCOME & EXPENSE BY ACCOUNT: 2019

INCOME & EXPENSE BY FUND: 2019

• The entire irrigation system needs to be replaced at an expected cost of $3,000,000.

• Cart paths have tree roots growing in them and the course does not have a pond

capable of holding enough water for irrigation beyond 3 days.

• The current gas tank is underground and for safety and ease of use, gas should be

maintained in an above ground tank.

• The Pro Shop and Maintenance Buildings are run down and need to be refurbished.

• Golf equipment and carts have a life expectancy of around 8 years and annual

expenditures for equipment is around $100,000.

• GVRC’s adult membership rate of $50 per year was acceptable when there was

sufficient property tax revenue received from oil and gas. However, with the

potential for a decrease in oil and gas property tax (which comprises around 90% of

total property taxes) rates must be increased..

• The roof was only partially replaced in 2013-2014 and needs to be finished.

• The HVAC system stopped functioning in 2019 and needed to be replaced.

• Plumbing is in a constant state of repair and will need to be evaluated for

replacement.

• Rec Center charges for services cover only 25% of their expenses. This ratio is

unsustainable. Even with the 2020 increase in Rec Center rates, the District’s

Operating Income of $1,072,950 barely covers payroll expense of $1,065,314.

Financial Information: Selected ComparativeFinancial Situation for 2020

Grand Valley Rec Center

• The District has lost approx. $2M per year in Property Tax Revenue since 2016; a loss of 56%.

• Residential properties only pay $116,000 annually to PBMPRD in property taxes, or an average

of $27 per year per home.

• The District facilities (Battlement Mesa Golf Club and Grand Valley Recreation Center) are

around 40 years old and need major capital improvements, infrastructure replacements and

expenditures.

Battlement Mesa Golf Club

• Programs run at a loss and will most likely continue to cost the District

around $125,000 each year.

• Approximately 70-80% of the Grand Valley School District students receive a

free lunch and many of these youth receive discounted rates for sports

programs and activities.

• PBMPRD is one of the few Districts in the area that offer all sports programs.

Many other towns and districts have moved to club sports that are organized

and managed by parents.

• Also, the cost for referees and scorekeepers is an additional expense.

• The biggest draw to the community is the Craft Fair which is held every

November and has more than 3,000 attendees

Programs & Activities

• The Community Park still has approximately $100,000 in capital projects to

complete the Master Plan.

• There has been vandalism at the Park and cameras and lights are being

installed to alleviate this problem.

• PBM Trail & Tanker 56 Bike Trail.

The Community Park

Financial Situation for 2020

Capital Projects and Improvements

Total Capital Expenditures $4,127,469

COMMUNITY PARK: $1,958,938

• Western Town and Playground Capital Project (with funding from GOCO)

• Community Park Playground Grand Opening

• Paved road into park and parking lots

• Restroom constructed

• Bike flow trail constructed by Grand Valley Fire Protection District

• Concrete sidewalks

• Sign for park entrance

• Canopies installed above picnic tables

• Architect hired to develop plan for pavilion

• Additional sidewalks for internal and surrounding park

• Solar lights installed in 2019

BATTLEMENT MESA GOLF CLUB & PARKS: $1,241,989

• Irrigation System in conjunction with assistance from URSA

• Level 12 tee boxes

• Paved upper parking lot

• Ordered new computers and installed new Point of Sale software

• Pro-Shop Retail area expansion and new flooring

• Purchased new sprayer and club cart

• Purchased 60 new carts in 2018, which save on fuel costs

• Sign for golf entrance

• Constructed new refrigeration area for restaurant

• Purchased new appliances for restaurant

• 2 new greens mowers

• Repaved lower parking lot

• New rough and greens mowers

• Daisy Ditch metering and water rights

• Cart Paths - partial

• Pond relocation capital planning in process: Will lower electrical costs and

perhaps provide water to Rec Center

PBMPRD and Garfield County School District have applied for and received funding

from Garfield County Federal and Mineral Lease District to construct a ropes course

at the Garfield County School District 16 Administration Office, 460 Stone Quarry

Road, Parachute. PBMPRD and Garfield County School District each contributed

$31,500 toward the course.

Capital Projects and Improvements

GRAND VALLEY RECREATION CENTER AND PROGRAMS: $602,250

• Constructed new sauna

• Increased Room Rentals

• Striped parking lot

• Painted pickleball lines on tennis courts

• Removed fountain in front of Center due to water loss

• Repainted and made room divider repairs in Grand Valley Room

• Re-plastered entire pool

• Installed new concrete on pool deck-tile was chipped and sharp

• Installed new fire system (with funding from FMLD)

• Ordered new exercise equipment

• Installed new TVs with headsets

• Consolidated sports programs to decrease expense

• Numerous expenditures for sports equipment

• Sign for rec center entrance

• New computers-had been running on Windows 7

• Pool slides & hot tub repairs

• Furniture & office equipment

• Replaced boiler

• ADA lift for pool

• HVAC

PBM TRAIL: $292,792

ROPES COURSE: $31,500

The District constructed a trail that connects various facilities and provides additional

sidewalks within the Community Park. The Grand Valley Fire District constructed the

bike flow trail. The Trail is named “Tanker 56” in honor of the air tanker that crashed

into Lower Doghead Ridge on July 16, 1976 during the Battlement Creek Fire.

PBMPRD has received a $200,000 grant from Garfield County and $25,000 from

Battlement Mesa Metro District for the construction.

DISTRICT 2020 BUDGET

General and Administrative Expense: Property & liability insurance, Workers Comp, accounting, payroll

services, advertising and promotion, bank card fees, website, computer, internet, district management,

legal, audits, phone, security system, dues, training, postage, office supplies and equipment, printing, grant

preparation, employee background checks and $60,000 in contingency. Normal G&A % is 35%-45%.

PBMPRD is at 12%..

Non-operating Expense: Garfield County Treasurer’s fees.

Operating Expense: Course maintenance expense, landscape maintenance, parks operations, Pro-shop

expenses, program expenses, Rec Center expenses, utilities, supplies, contract labor, etc.

Payroll Expenses: Salary and hourly wages, independent contractors, health insurance, retirement 457B,

payroll taxes, and paid time off. Hourly wages have increased 44% since 2016.

Expense Notes:

INCOME EXPENSE

CTF $22,000 G&A (General/Admin) $375,428

Contributions $11,000 Contingency $60,000

Gas Royalties $80,000 Non-Operating Exp. $119,500

Grants $475,000 Operating Exp. $638,860

Interest Income $104,000 Payroll Exp. $1,065,314

Property Taxes & SOT $2,327,068 Repairs/Maintenance $100,500

Rental Income $15,300 Total Expenses $2,359,602

Total Non-Operating Income $3,034,368

CAPITAL OUTLAY

Operating Income $1,072,950 Community Park $25,000

COGS -$59,000 Cart Paths $40,000

Total Operating Income $1,013,950 Daisy Ditch well/meter $65,000

TOTAL INCOME $4,048,318 Golf Maintenance Equip $45,000

Irrigation Pond $985,000

Rec Center Irrigation $150,000

Rec Roof/Solar $200,000

Total Capital $1,510,000

NET INCOME $178,716