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ATTACHMENT 4 <br />Review of the Oval's Financial Performance <br />As these tables demonstrate, the Oval's projected financial operations were expected to generate <br />a cash-flow surplus of $75,000 — 95,000 annually during the first three years. Presumably, it was <br />based upon this projection that the City decided to use an internal loan (to be repaid at $75,000 <br />annually) to help finance the construction of the Oval. <br />Conspicuously absent from the pro-forma is the inclusion of any depreciation. The Oval, at a <br />construction cost of $3 million and a projected �aseful life of 15-20 years would incur <br />depreciation charges of $150,000 - 200,000 annually. It's uncertain as to why this cost was not <br />accounted for, but it is presumed that a non-Oval funding source was identified to cover major <br />repairs and renovations. <br />