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The Stratton Township Park

Student Name

University

Course

Professor Name

Date
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The Stratton Township Park

Question 1
Category Subcategory Amount
Personnel Park Manager $104,000
Assistant Manager $64,575
Maintenance Staff $472,500
Total Personnel Costs $641,075
Personnel Benefits $1,282,150.00
Operating Expenses Central Supply and Utility Costs $10,000
Depreciation Expenses $610,000
Fuel and Utility Costs for Trail
and Wilderness Areas $100,000
Total Operating Expenses $720,000
Golf Course Scheduler Costs $10,400
Check-In Staff Costs $83,200
Seasonal Parts and Supplies
Costs $60,000
Fuel and Utility Costs $60,000
Depreciation Expenses $160,000
Maintenance Staff Expenses $112,000
Total Golf Course Costs $485,600
Pool Manager Salary $13,000
Depreciation Expenses $26,000
Head Lifeguard Salary $29,120
Lifeguard Salaries $218,400
Chemical Costs $2,275
Electricity Costs $30,555
Maintenance Staff Expenses $23,400
Seasonal Parts and Supplies
Costs $7,800
Total Pool Costs $350,550
Nature Tours Guide Volunteer Donation $18,000
Total Nature Tours Costs $21,500
concert $100,000
Total Expenses $2,859,800

Income Parking Fees $251,200

Green Fees $507,000
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Caddy Fees $74,880

Admission Fees $682,500
Individual Tour Fees $1,500
Group Tour Fees $2,000
concerts $125,000
pool Admission Fees $383,250.00
Total Income $2,027,330

Net Income ($832,470)

Table 1: Annual Program Budget

Among the several alternatives for lowering the Stratton Township Park's operational

expenses are: Personnel expenditures make up a significant amount of the park's budget. One

possibility is to minimize the number of maintenance workers or to alter their pay. Seasonal

employees are employed by the park for reservation and scheduling, the check-in desk, and golf

course maintenance. Reduce the number of seasonal employees or develop more cost-effective

methods to handle these responsibilities (Finkler et al., 2023). Finding more efficient suppliers or

negotiating better contracts might help to lower central supply and utilities expenses.

The golf courses account for a significant amount of the park's depreciation and

operational expenditures. Consider shutting the golf courses, which might result in huge cost

savings. This, however, might have a negative influence on the park's earnings and image as a

leisure destination. Pool expenses might be decreased by restricting operation hours, lowering

the number of lifeguards or changing their pay, or locating more cost-effective pool chemical

and supply providers. Consider raising fees or providing new activities that will attract visitors to

create more cash from the park.

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Question 2

Determine the total cost of running the golf course and divide it by the number of rounds

of golf played in a year to obtain the break-even green fees for the golf course. Assume that

changes in price have no effect on the number of users.

Without Allocated Management Salaries:

Break-even green fees = Total Golf Course Costs / Number of rounds played

Break-even green fees = $1,067,480 / 13,000 = $82.11

With Allocated Management Salaries:

Break-even green fees = Total Golf Course Costs / Number of rounds played

Break-even green fees = $1,236,055 / 13,000 = $95.08

To estimate the admittance price at which the pool may break even, first ascertain the entire cost

of running the pool and then divide that figure by the number of visitors. Assume that price hikes

have no effect on the number of users.

Without Allocated Management Salaries:

Break-even admission fees = Total Pool Costs / Number of visitors

Break-even admission fees = $311,550 / 16,000 = $19.47

With Allocated Management Salaries:

Break-even admission fees = Total Pool Costs / Number of visitors

Break-even admission fees = $324,550 / 16,000 = $20.28

As a result, the golf course's break-even green fees are $82.11 without assigned management

wages and $95.08 with allocated management pay. Without assigned management wages, the

break-even entrance rates for the pool are $19.47 and with allotted management salaries are

$20.28.
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Question 3

Closing any of the Stratton Township Park's activities will have a major effect on the

park's net income. The following is a breakdown of the consequences of shutting down each

operation: The park's net profits will increase once the pool business is discontinued. The net

profit after closing the pool is $98,529. This is due to the fact that running a pool incurs major

expenditures such as upkeep, water treatment, lifeguard salary, and other expenses. By closing

the pool, the park may save money on these expenditures, resulting in a higher net revenue.

The cancellation of the music series will have a detrimental effect on the park's net

profits. The net revenue after canceling the concert series is $939,521. The concert series is a

major source of money for the park, and its cancellation will result in a loss of ticket sales,

sponsorships, and other revenue sources. Furthermore, the park may still incur certain concert-

related charges, such as marketing and promotion fees.

The closure of the tours business will also have a detrimental effect on the park's net

revenue. The net revenue after terminating the trips is $916,521. Tours, like the concert series,

provide considerable cash for the park, and their discontinuation will result in a loss of ticket

sales and other revenue sources. The park may nevertheless incur certain tour-related charges,

such as tour guide pay and marketing fees.

The park's net income will increase when the golf course business is phased out. The net

profit after closing the golf facility is $233,959. It should be noted, however, that the golf course

may still make cash via other sources, such as organizing events or selling items. However,

running a golf course incurs major expenditures such as maintenance, employee compensation,

and other costs, therefore closing it will result in a positive effect on the park's net income.
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Ultimately, closing the pool and golf course will result in a beneficial influence on the

park's net profitability. Shutting down the concert series and tour activities, on the other hand,

will have a detrimental effect on the park's net profits. However, it is critical to evaluate the long-

term consequences of discontinuing any of these activities, such as decreasing visitor numbers,

changes in the park's image and reputation, and the influence on the surrounding population.

Question 4

(Attached in Excel)

Question 5

There are many options for dealing with the $697,620 budget deficit. Personnel

expenditures are the most expensive component in the budget, accounting for more than $1.9

million. To save money, one alternative would be to decrease the number of maintenance

workers or change their salary and perks. Another approach is to explore outsourcing certain

services or hiring part-time or seasonal workers where feasible.

In addition to the planned increases in green fees and pool entrance prices, the park

should seek for other methods to boost revenue. For example, the park may explore adding

additional attractions or events, such as a mini-golf course, a zip line, or a water park, to create

more revenue. The park might also look into forming collaborations with local companies or

groups to sponsor events or activities.

While the budgeted running expenses are already minimal, there may be some space for

cost-cutting. The park, for example, might look for methods to cut its central supply and utility

expenses, such as utilizing more energy-efficient lighting or minimizing trash. To decrease

depreciation expenditures, the park might also consider deferring or cutting down any of its

planned capital investments or maintenance projects. The park might explore for grants,
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contributions, or other kinds of outside funding to assist meet operational expenses or capital

requirements (Finkler et al., 2023). This may include contacting local government agencies, private

foundations, or business supporters. The park might potentially look at crowdfunding or other

public fundraising methods.

Use a mix of the following strategies: To remedy its funding gap, the park may need to

adopt a multi-pronged strategy, integrating some of the techniques listed above. For example, the

park might cut staff expenditures while simultaneously looking for new income streams and

outside financing sources. The park may also seek to streamline its operations and discover

savings within the company in order to minimize total expenditures.

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Reference

Finkler, S. A., Calabrese, T. D., & Smith, D. L. (2023). Financial Management for public,

health, and not-for-profit organizations (7th ed.). CQ Press, an imprint of SAGE

Publications, Inc.