Golf Course Commission — Agenda Packet

Golf Course Commission Meeting Agenda May 5, 2026 - 10:00 AM New Berlin Hills Golf Course- Clubhouse 13175 W. Graham Street Amended & Posted: 04/30/2026 at 3:45 PM Published: 04/30/2026 AGENDA 1. CALL TO ORDER 2. ROLL CALL; DECLARATION OF QUORUM; PUBLIC NOTICE 3. APPROVAL OF MINUTES A. 01/19/2026 Meeting Minutes 4. COMMUNICATIONS A. Financial Review • First Quarter Rounds & Revenue B. Facilities & Capital Improvements • Clubhouse Paint • Golf Shop Fixtures • Gazebos C. NBH History Research Project 5. OLD BUSINESS 6. NEW BUSINESS A. Staffing Update 7. ADJOURN Additional Information • The agenda packet, including supplemental information related to agenda items, is available online at www.NewBerlinWI.gov. Once finalized by the governing body, approved meeting minutes will also be posted online. • Agenda items may be taken out of order at the governing body's discretion. • Members, and possibly a quorum, of other municipal governmental bodies may attend this meeting to gather information. However, no action will be taken by any governmental body other than the one referenced in this notice. • Accommodations will be provided under the Americans with Disabilities Act (ADA) to meet the needs of individuals with disabilities. If you require assistance or appropriate aids and services, please contact the Office of the City Clerk at (262) 786-8610 with reasonable notice. Page 1 of 19 Golf Course Commission Supplemental InformaƟon April 20, 2026 – 10:00 AM New Berlin Hills Golf Course – Clubhouse 13175 W. Graham Street * First Quarter Update Rounds & Revenue Page 2 of 19 Page 3 of 19 Page 4 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC FINANCIAL STATEMENTS Year Ended December 31, 2025 Page 5 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Table of Contents December 31, 2025 Pag e Number FI NANCIAL STATEMENTS Independent Accountant’s Review Report 1 Statement of Income and Divisional Earnings 2 Balance Sheet 3 Statement of Cash Flows 4 Notes to Financial Statements 5 - 11 Page 6 of 19 L. M. HENDERSON & COMPANY LLP CERTIFIED PUBLIC ACCOUNTANTS 450 E. 96th Street, Suite 200 Indianapolis, IN 46240 Telephone: 317.566.1000 Fax: 317.566.1700 Independent Accountant’s Review Report To the Board of Directors and Members of New Berlin Hills Golf Course A Division of Green Golf Partners, LLC We have reviewed the accompanying financ ial statements of New Ber lin Hills Golf Course (a Wisconsin operation), a Division of Green Golf Partners, LLC, which comprise the balance sheet a s of December 31, 2025, a nd the related statement of income and divisional earnings and cash flows for the year ended December 31, 2025, a nd the related notes t o the financ ial statements. A review includes primarily applying analytic al procedures to management’s financial data and making inquiries of company management. A review is substantially less in scope than an audit, the o bjective of which is the expression of a n opinion regarding the financial statements as a whole . Accordingly, we do not express such an opinion. Management’s Responsibility for the Financial Statements Management is responsible for the preparati on and fair presentation of these financ ial statements in accordance with accounting principles generally accepte d in the Unite d States of America; th is includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error. Accountant’s Responsibility Management’s responsibility is to conduct the review engagement in accordance with Statements o n Standards for Accounting and Review Services promulgated by the Accounting a nd Review Services Committee of the AICPA. Those standards require us to perform procedures to obt ain limited assurance as a basis for reporting whether we are aware of any materia l modifications that sho uld be made to the financ ial statements for them to be in accordance wit h accounting principles generally accepted in the Unite d States of Americ a. We believe that the results of our procedures provide a reasonable basis for our conclusion. We are require d to be independent of New Berlin Hills Golf Course and to meet our other ethic al responsibilities, in accordance with the relevant ethical requirements related to our review. Accountant’s Conclusion Based on our review, we are not aware of any material modifications that sho uld be made t o the accompanying financial statements in order for them t o be in accordance wit h accounting principles generally accepte d in the United States of America. Certified Public Accountants Indianapolis, Indiana March 31, 2026 Members American Institute of Certified Publi c Accountants Permission to publish excerpts from this report or references thereto with mention of our name is withheld until the form and substance of such excerpts or references are approved by us Page 7 of 19 New Berlin Hills Golf Course For the Year Ended December 31, 2025 Year Ended December 31, 2025 REVENUE: Green fees 1,058,533$ Golf cart rentals 442,661 Merchandise income 92,444 Food and beverage sales 751,155 Other income 9,865 Total revenue 2,354,658 OPERATING EXPENSES 2,181,487 173,171 OTHER EXPENSES: Depreciation and amortization 65,458 Interest expense 3,860 Total other expense 69,318 NET INCOME 103,853$ DIVISIONAL EARNINGS: Balance, beginning of year 649,057$ Add: Net income 103,853 Balance, end of year 752,910$ A Division of Green Golf Partners, LLC Statement of Income and Divisional Earnings See Notes to Financial Statements and Independent Accountant's Review Report. (2) Page 8 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Balance Sheet at December 31, 2025 December 31, 2025 ASSETS CURRENT ASSETS: Cash 1,850$ Accounts receivable - trade 9,521 Inventory 46,221 Due from related party 997,071 Prepaid expenses 109,461 Total current assets 1,164,124 PROPERTY AND EQUIPMENT: Golf shop, concessions, and maintenance equipment 443,169 Less: Accumulated depreciation and amortization 220,414 Total property and equipment 222,755 OTHER ASSETS: Right of use asset (net of amortization) 251,463 Total assets 1,638,342$ LIABILITIES AND DIVISIONAL EARNINGS CURRENT LIABILITIES: Capital improvement fund 231,228$ Finance lease liabilities 43,320 Operating lease liability 64,406 Accrued payroll 7,377 Gift certificates/rainchecks 52,378 Accrued variable rent expense 153,853 Other accrued expenses 27,045 Total current liabilities 579,607 LONG-TERM LIABILITIES: Finance lease liabilities (net of current portion) 118,768 Operating lease liability (net of current portion) 187,057 Total long-term liabilities 305,825 Total liabilities 885,432 DIVISIONAL EARNINGS: 752,910 Total liabilities and divisional earnings 1,638,342$ See Notes to Financial Statements and Independent Accountant's Review Report. (3) Page 9 of 19 New Berlin Hills Golf Course Statement of Cash Flows For the Year Ended December 31, 2025 Year Ended December 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income 103,853$ Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 65,458 (Increases) decreases in certain assets: Accounts receivable - trade (6,409) Inventory 8,456 Due from related party (68,700) Prepaid expenses (41,655) Increases (decreases) in certain liabilities: Accounts payable (4,937) Event deposits (6,068) Accrued payroll (9,422) Accrued variable rent (61,998) Other accrued expenses 13,592 Gift certificates/rainchecks 6,793 Total adjustments (104,890) Net cash used in operating activities (1,037) CASH FLOWS FROM FINANCING ACTIVITIES: Payments for capital improvements fund (13,313) Collections for capital improvements fund 59,044 Payments on finance lease liabilities (44,544) Net cash provided by financing activities 1,187 NET CHANGE IN CASH AND CASH EQUIVALENTS 150 CASH AND CASH EQUIVALENTS: Balance, beginning of period 1,700 Balance, end of period 1,850$ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest 3,860$ A Division of Green Golf Partners, LLC See Notes to Financial Statements and Independent Accountant's Review Report. (4) Page 10 of 19 SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: During 2025, the Company placed financing lease assets in the amount of $81,309, with depreciation of $2,710, on the balance sheet in exchange for new financing lease liabilities in the amount of $78,835, net of interest. See Notes to Financial Statements and Independent Accountant's Review Report. Page 11 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (5) N ote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant accounting policies followed by New Berlin Hills Golf Course (the “Division”) are listed below: (a) Green Golf Partners, LLC (the “Company”) is a diversified golf management company with its home office located in Chicago, Illinois. The New Berlin Golf Course division of Green Golf Partners, LLC represents the leased operations of the 18-hole public golf course known as New Berlin Hills Golf Course in the city of New Berlin, Wisconsin. The Division is engaged primarily in the operation of the golf course with additional facilities for banquets and events that the Division may provide food and beverage services as well. (b) Troon acquired Green Golf Partners, LLC on April 30, 2019. Headquartered in Scottsdale, Arizona, Troon is the world’s largest golf management company providing services at over 940 locations around the globe, including managing over 600 golf courses. In addition to golf, Troon specializes in homeowner association management, private residence clubs, estate management and associated hospitality venues. Troon’s award-winning food and beverage division operates and manages over 600 restaurants located at golf resorts, private clubs, daily fee golf courses and recreational facilities. (c) The Division follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842” ) and all subsequent lease related ASUs. This standard modifies the guidance used by lessors and lessees to account for leasing transactions. The Division adopted ASU 2016-02 using the optional transition method, which allows for prospective application of the standard. In addition, the Division elected practical expedients permitted under the transition guidance permitting the Division to not assess historical lease classification, prior conclusions related to indirect costs, and whether any expired or existing contracts are or contain leases. See Note 6 and 7 for additional information regarding the effect on finance leases and operating leases, respectively. The Division follows FASB ASU 2014-05 (Topic “853”). This standard specifies that an operating entity should not account for a service concession agreement as a lease in accordance with Topic 842. See Note 2 for information regarding the agreement that falls within this accounting policy election. (d) The Division follows FASB ASU 2014-09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “Topic 606”). This standard creates a single framework for recognizing revenue from contracts with customers that fall within the scope of the standard. The Division’s revenues come from sales to customers for event space, food and beverage related to events, and other event revenues. The Division enters into contracts initiated by customers to provide these services under fixed-unit price contracts. The Division’s performance obligations are generally satisfied upon completion of the event. At that time, revenues from the contract and deposits are recognized as revenue. It is not typical for contracts to require significant judgment to determine the transaction price. Page 12 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (6) N ote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (e) Assets and liabilities and income and expense are recognized in these financial statements on the accrual basis of accounting. (f) The Division follows FASB ASU 2016-13, Financial instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This standard amends the guidance on the impairment of financial instruments by requiring measurement and recognition of expected credit losses for financial assets held. The standard did not materially impact net income or cash flows. Accounts receivable are customer obligations primarily from banquets and event services rendered in the normal course of business. Management carries its accounts receivable at the amount expected to be collected. The Division reviews accounts receivable on a periodic basis to determine if any receivables will potentially be uncollectible. The Company includes any accounts receivable balances that are determined to be uncollectible in an allowance. After all attempts to collect the receivable have failed, the receivable is written-off against the allowance. Based on the information available, the Division believes an allowance as of December 31, 2025 is not necessary as historical write-offs have been immaterial. There were no write-offs or allowance recorded during the year ended December 31, 2025. In accordance with FASB ASC 606-10-50-11, opening and closing balances of accounts receivable was $3,112 at January 1, 2025 and $9,521 at December 31, 2025. (g) All items of assets are shown at net realized value. Additionally, inventory is stated at cost based on the specific identification method and consists of golf supplies, apparel, food, and beverages. (h) Property and equipment are recorded at historical cost. The Division capitalizes additions of property and equipment in excess of $1,000. Depreciation and amortization of property and equipment is computed using the straight-line method and based upon the estimated useful lives of the assets. Expenditures for property and equipment and for renewals or betterments which extend the originally estimated economic life of the assets are capitalized. Expenditures for maintenance and repairs are charged to expense. When an asset is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations. Depreciation and amortization expense was $65,458 for the year ended December 31, 2025. (i) For purposes of the statements of cash flows, all highly liquid debt instruments purchased with a maturity of three months or less are considered to be cash equivalents. (j) At certain times during the year, Troon maintains cash balances with financial institutions which may exceed the Federal Deposit Insurance Corporation limit of $250,000. (k) The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. (l) Advertising costs are expensed as incurred. Advertising expense was $1,434 for the year ended December 31, 2025. Page 13 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (7) Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (m) Event deposits represent deferred revenue and consists of prepaid membership fees received by the Company. (n) Management has evaluated subsequent events through March 31, 2026, the date that the financial statements were available to be issued. Note 2: SERVICE CONCESSION AGREEMENT City of New Berlin Lease The Company has a service concession agreement with the city of New Berlin to operate New Berlin Hills Golf Course located in New Berlin, Wisconsin. The agreement is reported under the guidance of Topic 853. The agreement commenced May 4, 2011 for three years and eight months with a five-year renewal option, which was exercised through December 31, 2019. This agreement was renewed to extend it through December 31, 2024 and then again to extend it through December 31, 2029. Annual rent is $150,000, plus 75% of the annual net profit, as defined in the agreement, up to $100,000 and 50% of the annual net profit in excess of $100,000. These amounts are included in the statement of income and Divisional Earnings. The Company has provided the city of New Berlin a $50,000 irrevocable letter of credit as a security deposit and a performance bond. Rent expense was $303,854 for the year ended December 31, 2025. The following table presents the future undiscounted rental payments of the concession agreement as of December 31, 2025: Year Ended December 31, Amount 2026 150,000$ 2027 150,000 2028 150,000 2029 150,000 2030 - Thereafter - Total 600,000$ Not e 3: CAPITAL IMPROVEMENT FUND The Division collects $1.50 for each 18-hole round and $0.75 for each 9-hole round and amounts are deposited into a liability account each month. A corresponding expense (or asset if capitalization is necessary) is recorded upon the time of purchase. Page 14 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (8) No te 3: CAPITAL IMPROVEMENT FUND (continued) During the year, the capital improvement fund had the following activity: Capital improvement fund balance (deficit), January 1, 2025 (185,497)$ Collection (59,044) Improvements 13,313 Capital improvement fund balance (deficit), December 31, 2025 (231,228)$ Note 4: Note 5: Note 6: RELATED PARTY TRANSACTIONS Allowed by terms of the lease with the city of New Berlin, the Company may charge the Division a discretionary fee for administrative charges, not to exceed $40,000 for the base year 1995 with a maximum increase of $2,000 for each subsequent year. At December 31, 2025, the maximum allowable administrative charge was $96,000. Actual charges to the Division were $96,000 for the year ended December 31, 2025. At December 31, 2025, Troon owed the Division $997,071. 401(K) PLAN The Company sponsors a defined contribution plan covering all eligible employees of the Company. Each participant may make pretax contributions up to 50 percent of the participant’s eligible earnings, subject to Internal Revenue Service limitations. The Company matches 25 percent of the first 5 percent of employee contributions per pay period. These matching contributions made by the Company vest based on years of service. The Division recognized expense for matching contributions of approximately $6,300 for the year ended December 31, 2025. LESSEE LEASES - FINANCE The Division has five active finance leases under ASU 2016-01. In accordance with ASU 2016-01, finance lease assets and finance lease liabilities were recorded. The total financing lease liability was $162,088 at December 31, 2025. As of December 31, 2025, the short-term portion of the outstanding balance was $43,320 and the long-term portion was $118,768, net of interest expense. Total interest expense for the year ended December 31, 2025 was $3,860. Page 15 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (9) N ote 6: LESSEE LEASES - FINANCE (continued) As of December 31, 2025, financing lease assets totaled $278,257, with related accumulated depreciation of $118,424, and depreciation expense of $45,637. The financing lease assets are included with golf shop, concessions, and maintenance equipment and the financing lease assets depreciation is included within depreciation and amortization expense. There are no variable lease payments, no residual value guarantees, and no restrictions or covenants imposed by the leases. At the end of the lease term there is an option to purchase all assets, renew the agreement, or return the equipment. These options have not been recognized in the financing lease assets and financing lease liabilities. With no discount rates included, the Company has elected to use the risk-free rate. The weighted average remaining lease term is 48.56 months and the weighted average discount rate is 3.61%. The following is a summary of the aforementioned finance leases: Toro Realmaster 3555-D The Company entered into a five-year finance lease with TCF National Bank for two Toro Realmaster 3555-Ds. The lease expires April 2026 and requires monthly payments during the year. Depreciation of assets under the finance lease, which is included in depreciation and amortization expense, amounted to $21,522 for the year ended December 31, 2025. Cannon ImageRUNNER Advance The Company entered into a three-year finance lease with Pacific Office Automation for a Cannon ImageRunner Advance. The lease expires February 2027 and requires monthly payments during the year. Depreciation of the asset under the finance lease, which is included in depreciation and amortization expense, amounted to $1,669 for the year ended December 31, 2025. Buffalo Turbine Cyclone Squared & Salsco Roll N Go The Company entered into a five-year finance lease with Huntington National Bank for a Buffalo Turbine Cyclone Squared and a Salsco Roll N Go. The lease expires July 2029 and requires monthly payments during the year. Depreciation of assets under the finance lease, which is included in depreciation and amortization expense, amounted to $11,374 for the year ended December 31, 2025. Toro ProCore 648 The Company entered into a five-year finance lease with Huntington National Bank for a Toro ProCore 648. The lease expires September 2029 and requires monthly payments during the year. Depreciation of the asset under the finance lease, which is included in depreciation and amortization expense, amounted to $8,362 for the year ended December 31, 2025. Toro Greenmaster 3250 Tripex Mower & Toro Workman GTX Utility Vehicles The Company entered into a five-year finance lease with First Citizens Bank for a Toro Greemaster 3250 Tripex Mower and two Toro Workman GTX Utility Vehicles. The lease expires October 2030 and requires monthly payments during the year. Depreciation of the asset under the finance lease, which is included in depreciation and amortization expense, amounted to $2,710 for the year ended December 31, 2025. Page 16 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (10) N ote 6: LESSEE LEASES - FINANCE (continued) The following maturity analysis presents the future undiscounted rental payments of the finance leases as of December 31, 2025: Year Ended December 31, Amount 2026 48,508 $ 2027 39,668 2028 39,372 2029 31,897 2030 14,826 Thereafter - Total undiscounted lease payments 174,271 Less: Amount representing interest 12,183 Finance lease liabilities 162,088 Less: Current maturities 43,320 Long-term portion of finance lease liabilities 118,768 $ N ote 7: LESSEE LEASES - OPERATING The Company entered into a five-year operating lease under ASU 2016-01 with PNC Bank for seventy-five Yamaha Drive Gas Golf Carts, requiring monthly payments and expiring September 2029. The lease contains an option to purchase the assets at fair market value at the end of the lease. There are no variable lease payments, no residual value guarantees, and no restrictions or covenants imposed by the lease. As of December 31, 2025, the right of use asset was $328,203 and the associated accumulated right of use amortization was $76,740. The right of use asset, net of amortization, is included within other assets on the balance sheet and the associated lease liability is included in current and long-term liabilities on the balance sheet in the amounts of $64,406 and $187,057, respectively. Total lease expense incurred for the year ended December 31, 2025 was $71,456. With no discount rates included, the Company has elected to use the risk-free rate. As of December 31, 2025, the weighted average remaining lease term was 45 months and the weighted average discount rate was 3.51%. Page 17 of 19 New Berlin Hills Golf Course A Division of Green Golf Partners, LLC Notes to Financial Statements December 31, 2025 (11) N ote 7: LESSEE LEASES - OPERATING The following table represents the future undiscounted lease payments for the operating lease of December 31, 2025: Year Ended December 31, Amount 2026 71,456 $ 2027 71,456 2028 71,456 2029 53,592 2030 - Thereafter - Total undiscounted lease payments 267,960 Less: net present value adjustment 16,497 Operating lease liability 251,463 Less: Current maturities 64,406 Long-term portion of operating lease liability 187,057 $ Page 18 of 19 Page 19 of 19