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HomeMy WebLinkAboutG74-94 Ordinance No . G74-94 AN ORDINANCE ESTABLISHING FEES AND CHARGES AT THE MUNICIPAL GOLF COURSES OF THE CITY OF ELGIN FOR THE 1995 GOLF SEASON AND ESTABLISHING CERTAIN POLICIES RELATIVE TO THE OPERATION OF SUCH COURSES WHEREAS, the City Council has determined that it is necessary and proper to establish a new fee schedule and other policies relative to the operation of the municipal golf courses of the City of Elgin for the 1995 golf season. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That the following fees and charges be, and the same are hereby established for the two municipal golf courses for the 1995 season, to-wit: SEASON PASSES SPARTAN MEADOWS AND WING PARK: Resident Non-Resident Adult (age 16 and over) $ 580 . 00 $ 680 . 00 Senior ( 62 years and over) $ 320 . 00 $ 380 . 00 Youth (high school student $ 250 . 00 $ 305 . 00 or age 15 and under) Couples Pass $ 900 . 00 $ 1060 . 00 WING PARK ONLY: * Resident Non-Resident Adult (age 16 and over) $ 305 . 00 $ 370 . 00 Senior ( 62 years and over) $ 170 . 00 $ 205 . 00 Youth (high school student $ 140 . 00 $ 170 . 00 or age 15 and under) Couples Pass $ 475 . 00 $ 575 . 00 * Wing Park season passes are good at Spartan Meadows after Wing Park closes . GREEN FEE RATES - SPARTAN MEADOWS RESIDENT: Weekday Weekend 18 holes $ 15 . 75 $ 24 . 00 18 holes, Sr. and Jr. $ 13 . 00 DNA 9 holes* $ 9 . 50 DNA 9 holes, Sr. and Jr. $ 8 . 50 DNA Twilight $ 9 . 50 $ 14 . 00 NON-RESIDENT: Weekday Weekend 18 holes $ 18 . 25 $ 28 . 00 18 holes, Sr. and Jr. $ 16 . 25 DNA 9 holes* $ 12 . 00 DNA 9 holes, Sr. and Jr. $ 11 . 00 DNA Twilight $ 12 . 00 $ 16 . 50 GREEN FEE RATES - WING PARK RESIDENT: Weekday Weekend 18 holes $ 14 .50 DNA 18 holes, Sr. and Jr. $ 11 . 75 DNA 9 holes* $ 8 . 75 $ 10 . 75 9 holes, Sr. and Jr. $ 7 . 75 DNA Twilight $ 10.25 $ 14 . 75 NON-RESIDENT: Weekday Weekend 18 holes $ 17 . 00 DNA 18 holes, Sr. and Jr. $ 15 . 00 DNA 9 holes* $ 11 .25 $ 14 . 00 9 holes, Sr. and Jr. $ 10 .25 DNA Twilight $ 13 . 00 $ 17 .25 Weekdays : Monday through Thursday. Weekends : Friday through Sunday and holidays . * 9 hole rate applies to leagues . RENTAL RATES GOLF CARTS: 18 Holes $ 24 . 00 9 Holes $ 12 . 00 Single Rider 9 holes $ 8.00 Single Rider 18 holes $ 16 . 00 Pull Carts $ 2 . 00 RENTAL CLUBS: 18 Holes $ 10 . 00 9 Holes $ 6 .00 DRIVING RANGE: Small 4 3 . 00 Large $ 4 . 00 SCHOOL TEAM RATES School golf rate to be equal to one adult resident season pass per team per school season. RESERVATION CHARGES Leagues will be charged a $25 . 00 fee for their block of times for the season. Outings to be charged a non-refundable deposit equal to $10 . 00 per starting time necessary to accommodate the group. PERMANENT TEE TIME The fee per foursome for a Saturday or Sunday permanent tee time is $100 . 00 . DISCOUNTS A. DISABLED PERSONS DISCOUNTS: Senior citizen rates shall be available to disabled persons upon application which includes the following information: 1. Name and age of applicant. 2 . Notarized affidavit that applicant is unable to work, full or part time, due to physical disability. 3 . Written statement from licensed physician stating that the applicant is physically disabled and unable to work full or part time. B. GROUP DISCOUNTS: For groups of 16 or more a discount may be granted at the discretion of the Golf Professional . Section 2 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 3 . That this ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: December 14, 1994 Passed: December 14, 1994 Vote: Yeas 6 Nays 1 Recorded: December 15, 1994 Published: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk Elm n Agenda Item No . 1-Ark-a `!rto tte February 17 , 1994 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: 1994 Golf Fees PURPOSE The purpose of this memorandum is to forward to the Mayor and City Council a recommendation on 1994 golf rates from the Elgin Municipal Golf Committee and the Parks and Recreation Advisory Board. BACKGROUND The attached memorandum from Greg Bayor discusses in detail the considerations that were used in arriving at a proposed increase in golf rates for 1994 . The proposed fee changes include a five percent increase in the cost of season passes and a jump in daily fee rates of five and three percent at Spartan Meadows and Wing Park, respectively. Moreover, play at the golf courses is expected to grow by at least ten per- cent. Because of the Golf Fund' s tight budget and lack of adequate fund balance, staff will closely monitor golf reve- nues and expenditures during the upcoming season. FINANCIAL IMPACT The above rate increases and projected growth will generate an additional $37, 480 over the original 1994 budget revenues of $837 ,050 . While this increase covers a major portion of the first year' s debt retirement payment for the $750, 000 capital improvement program, it does not cover the $34 , 000 transfer. from the Golf Improvement Fund. After this trans- fer, there is no remaining dollars left in the Golf Improve- ment Fund. Therefore, the 20 percent growth factor scenario is necessary in order for revenues to meet budgeted expendi- tures and to eliminate the proposed transfer from the Improve- ment Fund. LEGAL IMPACT None. 1994 Golf Fees February 17, 1994 Page 2 RECOMMENDATION The recommendation is for the City Council to direct staff to prepare an ordinance with the 1994 golf rates as proposed by the Golf Committee and the Parks and Recreation Advisory Bpard. iliAi Rob:rt O. Ma m, Interim City Manager amp Attachment F February 14 , 1994 TO: Robert Malm, Interim City Manager \JA FROM: Greg Bayor, Director of Parks and Recreation SUBJECT: 1994 Golf Fees, Charges and Policies PURPOSE The Elgin Municipal Golf Committee and the Parks and Recreation Advisory Board requests City Council approve the 1994 golf fees, charges and policies . BACKGROUND Staff and the Golf Committee have worked extensively on a mutually agreeable set of fees , charges , and policies for the 1994 season. Key goals of the 1994 schedule of fees are: * Covering all costs through revenues * Covering the first years ' interest on the loan for the renovation work * Continue a reasonable annual fee increase policy rather than an occasional large increase * Create a schedule of fees that is sensitive to senior and junior golfers * Maintain a clean proportional difference in fees between nonresidents and residents * Maintain parity with other courses in the area The Parks and Recreation Administrative staff, golf professional staff, finance department staff and the golf committee struggled to find a palatable means of achieving these goals . The golf committee is not unanimous in the one goal of annual fee increases yet respects the logic of the difficulty that occasional large increases bear on staff and council and therefore have voted in favor of this troublesome issue. Page 2 . It is understood by all who helped formulate the 1994 plan that . the majority of any increase in revenue recovery will come from growth; significantly more so than a minor percentage increase in fees . This potential for growth is the single most important area we ' ll concentrate our efforts on in 1994 . Factors that will contribute to this effort are: * The City' s commitment of the loan to renovate the courses is well on its way to erase past stigma and to establish both courses as desirable choices for the golfing public. * The golf committee ' s entrepreneurial expertise have coauthored a strategic marketing plan to promote these course changes and values . * The golf staff has set an aggressive tournament schedule to reestablish Spartan Meadows as a ranking course for quality play. * The recreation staff along with the golf staff are developing a plan to rebuild the base of golfing interest in the community through an ambitious program for youth involvement. * The grounds staff has a reawakened motivation to compete with other area public courses to erase the past image and establish both courses as a measure of what public courses can be through proper practices . * The golf staff plans to provide a new quality of customer satisfaction through improved service; higher quality merchandise, food and beverage; and promotional specials to fill areas that were formerly weak producers . Individually each of these approaches to improve growth will produce positive results and taken together are sure to provide a comfortable expectation of increase revenues . Once growth is up to simply an acceptable normal level of play, the courses will be well positioned to not only cover their costs and their full commitment of the renovation loan; they' ll also be able to finally begin to bank revenue for future endeavors . As stated during the original renovation proposal, growth will not happen overnight, but with a good product and good plan, these courses eventually can be a source of pride for Elgin. Page 3 . The attachments detailing the fee proposals and support- ing information are: * Schedule A. Season passes with a 5% increase: • 1993 rates and resulting revenue, the 1994 proposed rate and potential revenues via growth factors . * Schedule B. Spartan Meadows daily fee proposal of a 5% increase: 1993 rates and resulting revenues, the 1994 proposal and potential revenues via growth factors . * Schedule C. Wing Park daily fee propcsal of a 3% increase: 1993 rates and resulting revenues, the 1994 proposal and potential revenues via growth factors . * Schedule D. Both courses budgets for costs . * Item E. The 1994 marketing plan. * Item F. The 1994 tournament schedule. * Item G. Simplified rates schedule of other courses in the area for parity/value comparisons . * Item H. Two articles from Golf Course Management supporting the theories used for the 1994 fee schedule. FINANCIAL IMPACT The primary factor influencing revenues is the number of rounds played. For comparison: 1992 1993 94+10% 94+20% Spartan Meadows daily 36 , 730 38,400 42 ,240 46 , 080 Spartan Meadows passes 265 251 276 301 Wing Park daily 33, 165 27 ,200 29 , 920 32 , 640 Wing Park passes 151 174 191 208 Page 4 . Comparable rounds (approximate) at other area courses are: 18-hole Courses 1992 1993 • Randall Oaks 42 , 000 37 , 000 Pinecrest 42 , 500 39 , 000 Bartlett Hills 44 ,500 38, 500 9-hole Courses Pottawatomie 44 , 655 40 , 861 The simplest "spin" that these numbers of rounds tell is that everyone except Spartan Meadows saw a decrease in rounds in 1994, most likely directly related to weather, but coun- tered at Spartan Meadows by the renovation work and late marketing. These other courses during a normal year ( 1992 ) generally see over 42 , 000 rounds of golf which would be Spar- tan Meadows target with the 10% growth factor over 1993 . Given our ability to recover from 1993 ' s poor weather via the excitement of the renovation and of marketing, along with a normal average expectation of total rounds it ' s reasonable to expect 1994 to achieve the growth projection of 10% if not more. To put this into a simple perspective it equates to an increase of only 20 golfers a day over 192 days . The operating costs for Spartan Meadows and Wing Park Golf Courses for 1994 is $873, 050 with an additional $40 , 000 necessary to cover the interest on the renovation loan for a total of $913, 050 . Establishing a 5% increase in season pass rates, combined with a 5% increase in daily fee rates at Spartan Meadows and a 3% increase in daily fees at Wing Park plus a 10% growth factor = $638,280 (and at 20% growth = $692 ,445 ) . The additional revenues necessary to cover the entire 1994 obligation is from "secondary revenue" of driving range, rental fees, food/concessions, golf merchandise, and miscella- neous which is budgeted at $247 ,500 for 1994 . As growth occurs it also impacts secondary revenue: $272 , 250 at 10% growth (and $297 , 000 expected at a 20% growth) . Page 5 . Combining primary revenues (green fees and passes ) with secondary" revenues (driving range, rentals, food, conces- sions, merchandise, etc . ) results in: Primary Secondary Total Assuming a 10% growth 638, 280 272 ,250 910,530 Assuming a 20% growth 692 , 445 297 , 000 989 ,445 The difference between operating costs plus interest payments totaling $913 , 050 would be covered by the golf im- provement fund of : at 10% growth = 2 ,520 at 20% growth = ( $76 , 395 ) placed into the fund LEGAL IMPACT RECOMMENDATION The Elgin Municipal Golf Committee, the Parks and Recrea- tion Advisory Board and staff recommends City Council approve the 1994 golf fees , charges and policies . /l e iGreg ayor hirector of Parks and Recreation Attachments SCIIE '"tE A Spartan Meadows & Wing Park Season Pass Rates 5% Increase 1993 - 1994 Spartan Meadows Pass Rates 1993 1993 1994 1994 1994 1994 1994 1994 Rate Rev Rate Rev Rev Rev Rev Rev NoGro 5%Gro 10%Gro 15%Gro 20%Gro SM Adlt Res 505 34 , 340 530 36 , 040 37 , 840 39 , 645 41 , 445 43 , 250 SM Adlt NRes 575 16 , 100 605 16 , 940 17 , 785 18 , 635 19 , 480 20 , 330 SM Cpl Res 775 5 , 425 815 5 , 705 5 , 990 6 , 275 6 , 560 6 , 845 SM Cpl NRes 890 3, 560 935 3 , 740 3 , 925 4 , 115 4 , 300 4 , 490 SM Sr Res 270 22 , 140 285 23 , 370 24 , 540 25 , 710 26 , 875 28 , 045 SM Sr NRes 315 10, 395 330 10 , 890 11 , 435 11 , 980 12 , 525 13 , 070 SM Jr Res 215 4 , 515 225 4 , 725 4 , 960 5 , 200 5 , 435 5 , 670 SM Jr NRes 250 2, 000 265 2 , 120 2 , 225 2 , 330 2 , 440 2 , 545 1, ) Wing Park Pass Rates WP Adlt Res 290 11 ,020 305 11 , 590 12 , 170 12, 750 13, 330 13 , 910 WP Adlt NRes 350 1 , 040 570 1, 480 1 , 555 1, 630 1 , 700 1 , 775 WP Cpl Res 450 1, 800 475 1, 900 1, 995 2, 090 2 , 185 2 , 280 WP Cpl NRes 545 -0- 575 -0- -0- -0- --0- -0.- WP Sr Res 160 16, 000 170 17, 000 17, 850 18, 700 19 , 550 20 , 400 WP Sr NRes 195 1 ,560 205 1 , 640 1 , 720 1 , 805 1 , 885 1 , 970 WP Jr Res 135 2,700 140 2, 800 2 , 940 3,080 3 , 220 3 , 360 WP Jr. NRes 160 -0- 170 -0- -0- -0- -0- -0- Total Revenues from Rates Total 132 , 955 139, 904 146, 930 153 , 855 160 , 930 167 , 940 SC1Ir"ULE B SPARTAN MEADOWS GREEN FEE RATES 5% Increase 1993 - 1994 Spartan Meadows Weekly Daily Rates 1993 1993 1994 1994 1994 1994 1994 1994 Rate Rev Rate Rev Rev Rev Rev Rev NoGro 5%Gro 10%Gro 15%Gro 20%Gro WD/9/AdR 8. 50 33, 550 9. 00 35 , 525 37 , 300 39 , 080 40, 855 42 , 630 WD/9/AdNR 11 . 00 11 , 640 11 . 50 12 , 165 12 , 775 13 , 380 13 , 990 14 , 600 WD/18/AdR 14 . 00 16 , 435 14 . 75 17 , 315 18 , 180 19 , 045 19 , 910 20 , 780 WD/18/AdNR 16 . 50 13 , 730 17 . 25 14 , 350 15 , 070 15 , 785 16 , 505 17 , 220 WD/9/SrJrR 7 . 50 6 , 495 8 . 00 6 , 930 7 , 275 7 , 625 7 , 970 8 , 315 WD/9/SrJrNR 10 . 00 3, 480 10 . 50 3 , 655 3 , 840 4 , 020 4 , 205 4 , 385 WD/18/SrJrR 11 . 50 3 , 475 12 . 00 3 , 625 3 , 805 3 , 990 4 , 170 4 , 350 WD/18/SrJrNR 14 . 50 6 , 310 15 . 25 6 , 635 6 , 965 7 , 300 7 , 630 7 , 960 WD/Twi/R 10 . 00 4 , 740 10 . 50 4 , 975 5 , 225 5 , 475 5 , 720 5 , 970 WD/Twi/NR 12 . 50 1 , 950 13 . 25 2 , 065 2 , 170 2 , 270 2 , 375 2 , 480 Spartan Meadows Weekend/Hc lay Daily Rates m. WE/9/R 10 . 50 7 ,780 11 . 00 8 , 150 8 , 560 8 , 965 9 , 375 9 , 780 WE/9/NR 13 . 50 3 , 145 14 . 25 3 , 320 3 , 485 3 , 650 3 , 820 3 , 985 WE/18/R 21 . 00 34 , 690 22 . 00 36 , 345 38 , 160 39 , 980 41 , 795 43 , 615 WE/18/NR 25 . 00 41 , 700 26 . 00 43 , 370 45 , 540 47,710 49 , 875 52 , 045 WE/Twi/R 14 . 00 6 , 900 14 . 75 7, 270 7 , 635 8 , 000 8 , 360 8 , 725 WE/Twi/NR 16 . 50 3 ,715 17 . 25 3 , 880 4 , 075 4 , 270 4 , 460 4 , 655 Spartan Meadows "Other" Rates League R 8 . 50 24 , 650 9 . 00 26 , 100 27 , 405 28 , 710 30 , 015 31 , 320 League NR 11 . 00 14 , 410 11 . 50 15 , 065 15, 820 16 , 570 17 , 325 18 , 080 Course Fee R 4 . 00 -0- 4 . 00 Course Fee NR 5 . 00 -0- 5 . 00 Other Green Fees (1) 28, 970 30 , 000 31 , 000 32 , 000 33 , 000 34 , 000 Spartan Meadows Total Revenue From Fees Other Than Passes Total 267 ,765 280 , 740 294 , 285 310 , 825 323 , 355 334 , 895 SCII,.,ULE C: Wing Park Green Fee Rates 3% Increase 1993 - 1994 Wing Park Weekday Daily Rates 1993 1993 1994 1994 1994 1994 1994 1994 Rate Rev Rate Rev Rev Rev Rev Rev NoGro 5%Gro 10%Gro 15%Gro 20%Gro WD/9/AdltR 8 . 50 42 , 185 8 . 75 43 , 426 45 , 595 47 , 770 49 , 940 52 , 110 WD/9/Ad1tNR 11 . 00 9 , 945 11 . 25 10, 170 10 , 680 11 , 185 11 , 695 12 , 205 WD/18/AdltR 14 . 00 390 14 . 50 405 425 445 465 485 WD/18/Ad1tNR 16 . 50 150 17 . 00 155 165 170 180 185 WD/9/SrJrR 7 . 50 14 , 760 7 . 75 15 , 250 16 , 015 16 , 775 17 , 540 18 , 300 WD/9/SrJrNR 10 . 00 1 , 790 10 . 25 1 , 835 1 , 925 2 , 020 2 , 110 2 , 200 WD/18/SrJrR 11 . 50 105 11 . 75 105 110 115 12.0 125 WD/18/SrJrNR 14 . 50 45 15 . 00 45 45 50 50 55 WD/TwiR 10 . 00 340 10 . 25 350 370 385 405 420 WD/Tw1NR 12 . 50 35 13 . 00 40 40 45 45 50 A Wing Park Weekend/Holiday Daily Rates WE/9/R 10.50 51 ,995 10. 75 53, 235 55, 895 58 , 560 61 , 220 63, 880 WE/9/HR 13. 50 18 , 630 14 .00 19 , 320 20 , 285 21 , 250 22, 220 23 , 185 WE/18/R 21.00 525 21 . 50 540 565 595 620 650 WE/18/NR 25.00 75 25. 50 75 80 85 90 90 Wing Park "Other" Rates League R 8. 50 4 , 630 8. 75 4 , 770 5 ,010 5 , 245 5 , 485 5, 725 League NR 11 . 00 365 11 . 25 370 390 405 425 445 Course Fee R 4 . 00 -0- 4 . 00 • Course Fee NR 5.00 -0- 5. 00 Other Green Fees (1) 6,980 7 , 500 8 , 000 8, 500 9 , 000 9 , 500 Wing Park Total Revenue from Fees other than Passes Total 152, 945 157 , 590 165, 595 173 , 600 181 , 610 189 , 610 - BUDGET PREPARATION WORKSHEET GMBA 93A - DEPARTN_-JT BASE REQUEST PAGE 127 , PROGRAM Go601L ACCOUNTING PERIOD 12/93 GMB 93A U SUBMITTED BY: PEARSON, CLAY BY DEPARTMENT/DIVISION PREPARED 01/06/94 AT 15:35:33 n M 1992 1993 Q Actual ADJUSTED 1993 1994 CITY fr" G ACCOUNT NUMBER ACCOUNT DESCRIPTION __BUDGET__ ESTIMATE COUNCIL APPR GOLF OPERATING b EXPENDITURE GOLF OPERATING ADMINISTRATION Earnings and Benefits G 540-5801-775.01-02 OVERTIME EARNINGS 24,785 280 500 0 a 540-5801-775.01-03 PART TIME EMPLOYEE EARN. 101,095 141,255 98,760 92,820 540-5801-775.01-04 PART TIME (NON-IMRF) EMPL 42,587 41,225 62,140 65,250 rf 540-5801-775.05-01 IMRF 13,041 38,780 28,000 21,500 rn 540-5801-775.05-04 FICA 1,209 2,180 4,800 2,200 540-5801-775.05-05 401A 405 0 0 0 540-5801-775.06-00 PAYROLL INSURANCE CHARGES 10,244 11,185 22,000 10,000 540-5801-775.07-00 EMPLOYEE ALLOWANCES 33 0 0 0 * Earnings and Benefits 193,399 234,905 216,200 191,770 Commodities & Supplies 540-5801-775.15-01 BOOKS 8 0 0 0 540-5801-775.15-02 PUBLICATIONS 0 100 0 0 540-5801-775.15-06 PHOTOCOPY EXPENSE 108 45 45 50 540-5801-775.15-99 OTHER OFFICE SUPPLIES 181 45 45 50 540-5801-775.17-05 JANITORIAL & CLEANING 2,575 1,875 1,875 2,500 540-5801-775.17-06 CLOTHING SUPPLIES 1,125 1,200 0 2,000 540-5801-775.17-08 MEDICAL & LABORATORY 709- 50 50 50 540-5801-775.17-12 PHOTOGRAPHIC SUPPLIES 134 600 500 500 540-5801-775.17-13 RECREATIONAL SUPPLIES 5,938 6,000 6,000 6,000 540-5801-775.17-14 HEATING FUELS 516 1,000 1,000 1,100 540-5801-775.19-02 ELECTRICAL MATERIALS 33 60 60 100 540-5801-775.19-03 PLUMBING MATERIALS 178 160 160 200 540-5801-775.19-05 PAINTING MATERIALS 281 200 200 100 540-5801-775.19-06 OTHER BUILDING MATERIALS 178 200 200 100 540-5801-775.22-15 CONCESSIONS-SPARTAN MDWS 33,385 38,000 38,000 39,000 540-5801-775.22-17 MERCHANDISE-SPARTAN MDWS 50,891 42,000 45,000 45,000 540-5801-775.24-02 LICENSE EXPENSE 23 100 100 100 * Commodities & Supplies 94,845 91,635 93,235 96,850 Contractural Services 540-5801-775.32-04 ADVERTISING 1,645 2,000 2,000 3,00 540-5801-775.32-08 PRINTING/REPRODUCTION 535 500 750 1,00 540-5801-775.32-09 MEMBERSHIP DUES 952 800 950 1,00 540-5801-775.32-10 POSTAGE, U.P.S., ETC. 586 450 1,000 1 ,00 540-5801-775.33-02 DISPOSAL 54 150 0 540-5801-775.34-02 CONFERENCE EXPENSE 777 800 500 540-5801-775.34-03 MEETING EXPENSE 24 180 150 540-5801-775.36-01 TRAINING EXPENSE 198 450 100 540-5801-775.38-01 TELEPHONE 5,256 5,790 7,000 7,50 540-5801-775.38-02 ELECTRICITY CHARGES 10,669 13,275 0 540-5801-775.38-03 GAS CHARGES 2,152 2,430 0 2,50 540-5801-775.38-04 SEWER CHARGES 444 1,105 1,105 1,20 540-5801-775.38-05 WATER CHARGES 831 1,840 1,840 2,00 - BUDGET PREPARATION WORKSHEET GMBA 93A - DEPARTF:_ _1 BASE REQUEST PAGE tcu PROGRAM GM601L ACCOUNTING PERIOD 12/93 GMB 93A SUBMITTED BY: PEARSON, CLAY BY DEPARTMENT/DIVISION PREPARED 01/06/94 AT 15:35:33 1992 1993 Actual ADJUSTED 1993 1994 CITY w„ ACCOUNT NUMBER ACCOUNT DESCRIPTION __BUDGET__ ESTIMATE COUNCIL APPR 540-5801-775.40-01 ELECTRICAL 312 300 300 500 540-5801-775.40-02 PLUMBING 62 400 2,200 500 540-5801-775.40-05 OTHER - BUILDINGS 834 400 500 5,000 540-5801-775.40-06 SERVICE - OFFICE EQUIP. 467 600 500 500 540-5801-775.40-08 SERVICE - OTHER EQUIP. 548 200 200 250 540-5801-775.40-09 SERVICE - OTHER IMPROVM. 233 150 100 100 540-5801-775.43-04 EQUIPMENT 0 50 0 0 540-5801-775.43-05 GOLF CART-SPARTAN MEADOWS 36,242 38,000 38,000 38,000 540-5801-775.43-99 MISCELLANEOUS RENTAL 120 100 0 100 540-5801-775.45-02 FISCAL AGENT FEES 0. 0 1,900 2,000 540-5801-775.45-03 PEST CONTROL 112 250 250 300 540-5801-775.45-99 OTHER MISC SERVICES 159 100 500 500 * Contractural Services 63,212 70,320 59,845 66,950 Insurance 540-5801-775.50-05 PUBLIC OFFICIAL LIABILITY 325 325 325 350 540-5801-775.50-08 LIABILITY 663 685 685 700 540-5801-775.50-10 INLAND MARINE 25 25 25 30 540-5801-775.50-11 PROPERTY 150 150 150 170 ' Insurance 1,163 1,185 1,185 1,250 Other Charges 540-5801-775.76-02 ILLINOIS STATE SALES TAX 7,372 8,745 8,000 9,100 540-5801-775.84-01 WORKING CASH REQUIREMENT 0 0 0 31,815 * Other Charges 7,372 8,745 8,000 40,915 Administrative Transfers 540-5801-775.60-10 TO GENERAL FUND 10,000 26,935 26,935 26,935 * Administrative Transfers 10,000 26,935 26,935 26,935 Capital Expenditures 540-5801-775.93-36 BUILDINGS/STRUCTURES 913 0 0 0 ' Capital Expenditures 913 0 0 0 a' ADMINISTRATION 370,904 433,725 405,400 424,670 MAINTENANCE Earnings and Benefits 540-5802-775.01-01 REGULAR EMPLOYEE EARNINGS 157,866 148,760 132,000 140,000 540-5802-775.01-02 OVERTIME EARNINGS 250 15,000 21,000 18,000 540-5802-775.01-03 PART TIME EMPLOYEE EARN. 33,698 50,750 50,000 54,000 540-5802-775.01-04 PART TIME (NON-IMRF) EMPL 28,390 24,150 25,000 25,000 540-5802-775.05-01 IMRF 46,232 25,850 33,000 35,000 540-5802-775.05-04 FICA 4,283 2,895 3,000 3,000 540-5802-775.05-05 401A 1,435 1,930 1,300 2,000 540-5802-775.06-00 PAYROLL INSURANCE CHARGES 36,318 37,635 36,000 30,000 - BUDGET PREPARATION WORKSHEET GMBA 93A - DEPARTh..T BASE REQUEST PAGE 129 PROGRAM GN601L ACCOUNTING PERIOD 12/93 GMB 93A SUBMITTED BY: PEARSON, CLAY BY DEPARTMENT/DIVISION PREPARED 01/06/94 AT 15:35:33 1992 1993 Actual ADJUSTED 1993 1994 CITY ACCOUNT NUMBER ACCOUNT DESCRIPTION BUDGET ESTIMATE COUNCIL APPR 540-5802-775.07-00 EMPLOYEE ALLOWANCES 99 0 220 0 * Earnings and Benefits 308,571 306,970 301,520 307,000 Commodities & Supplies 540-5802-775.15-01 BOOKS 2 0 0 0 540-5802-775.15-06 PHOTOCOPY EXPENSE 11 5 0 0 540-5802-775.15-99 OTHER OFFICE SUPPLIES 20 5 0 0 540-5802-775.17-02 HORTICULTURAL SUPPLIES 32,268 26,670 22,000 10,000 540-5802-775.17-05 JANITORIAL & CLEANING 858 625 500 500 540-5802-775.17-06 CLOTHING SUPPLIES 1,124 1,000 500 0 540-5802-775.17-07 DRY GOODS AND NOTIONS 406 500 250 500 540-5802-775.17-08 MEDICAL & LABORATORY 708- 50 0 100 540-5802-775.17-13 RECREATIONAL SUPPLIES 5,938 2,575 5,000 6,000 540-5802-775.17-15 VEHICLE FUELS 4,712 5,500 4,000 5,000 540-5802-775.17-17 OTHER PETROLEUM PRODUCTS 299 1,225 1,000 1,000 540-5802-775.17-18 MINOR EQUIPMENT, TOOLS 1,820 2,000 2,000 2,000 540-5802-775.17-19 MISCELLANEOUS SUPPLIES 1,719 1,500 1,000 1,000 540-5802-775.19-02 ELECTRICAL MATERIALS 289 400 400 500 540-5802-775.19-03 PLUMBING MATERIALS 709 640 600 600 540-5802-775.19-05 PAINTING MATERIALS 421 550 300 500 540-5802-775.19-06 OTHER BUILDING MATERIALS 532 1,400 1,500 500 540-5802-775.19-09 MATERIALS - AUTOMOTIVE 0 0 1,800 0 540-5802-775.19-11 MATERIALS - OTHER EQUIP 16,900 15,000 18,000 18,000 540-5802-775.19-12 MATERIALS - PUBLIC WAYS 5,427 3,900 4,000 4,000 540-5802-775.24-02 LICENSE EXPENSE 2 50 50 50 * Commodities & Supplies 72,749 63,595 62,900 50,250 Contractural Services 540-5802-775.30-05 MEDICAL 0 100 0 0 540-5802-775.30-99 MISCELLANEOUS 0 500 0 500 540-5802-775.32-09 MEMBERSHIP DUES 951 500 500 500 540-5802-775.32-10 POSTAGE, U.P.S., ETC. 65 50 0 0 540-5802-775.33-02 DISPOSAL 54 150 500 600 540-5802-775.34-02 CONFERENCE EXPENSE 776 1,280 500 1,200 540-5802-775.34-03 MEETING EXPENSE 16 100 100 600 540-5802-775.36-01 TRAINING EXPENSE 22 50 0 100 540-5802-775.38-01 TELEPHONE 1,752 1,500 1,500 1,200 540-5802-775.38-02 ELECTRICITY CHARGES 4,572 5,690 15,000 16,000 540-5802-775.38-03 GAS CHARGES 921 1,040 4,500 4,500 540-5802-775.38-04 SEWER CHARGES 111 275 275 300 540-5802-775.38-05 WATER CHARGES 3,323 4,000 4,000 3,500 540-5802-775.40-01 ELECTRICAL 2,805 2,700 600 2,500 540-5802-775.40-02 PLUMBING 247 600 600 500 540-5802-775.40-05 OTHER - BUILDINGS 7,503 3,600 4,000 4,000 540-5802-775.40-08 SERVICE - OTHER EQUIP. 4,932 1,500 2,000 1,000 540-5802-775.40-09 SERVICE - OTHER IMPROVM. 2,095 1,700 1,000 1,000 540-5802-775.43-01 REPLACEMENT FUND EQUIPM'T 25,296 55,460 49,914 45,480 540-5802-775.43-04 EQUIPMENT 0 450 0 500 540-5802-775.43-99 MISCELLANEOUS RENTAL 1,077 1,600 1 ,500 1 ,500 - BUDGET PREPARATION WORKSHEET GMBA 93A - DEPARTML,; BASE REQUEST PAGE 1.i PROGRAM GM601L ACCOUNTING PERIOD 12/93 GMB 93A SUBMITTED BY: PEARSON, CLAY BY DEPARTMENT/DIVISION PREPARED 01/06/94 AT 15:35:33 1992 1993 Actual ADJUSTED 1993 1994 CITY mn ACCOUNT NUMBER ACCOUNT DESCRIPTION BUDGET ESTIMATE COUNCIL APPR 540-5802-775.45-02 FISCAL AGENT FEES 1,478 1,500 400 0 540-5802-775.45-03 PEST CONTROL 28 100 100 150 540-5802-775.45-05 TREE SERVICE 0 1,000 1,000 1,000 540-5802-775.45-99 OTHER MISC SERVICES 1,428 500 800 1,000 • Contractural Services 59,452 85,945 88,789 87,630 Insurance 540-5802-775.50-05 PUBLIC OFFICIAL LIABILITY 325 325 325 350 540-5802-775.50-08 LIABILITY 1,987 2,065 2,065 2,200 540-5802-775.50-10 INLAND MARINE 75 75 75 100 540-5802-775.50-11 PROPERTY 450 450 450 500 540-5802-775.50-13 BOILER 350 350 350 350 * Insurance 3,187 3,265 3,265 3,500 Other Charges 540-5802-775.84-01 WORKING CASH REQUIREMENT 0 9,500 0 0 540-5802-775.88-01 DEPRECIATION 41,543 0 0 0 * Other Charges 41,543 9,500 0 0 Administrative Transfers 540-5802-775.60-10 10 GENERAL FUND 10,000 0 0 0 * Administrative Transfers 10,000 0 0 0 Capital Expenditures 540-5802-775.91-85 MECHANICAL EQUIPMENT 2,277 0 0 0 540-5802-775.92-85 NEW MECHANICAL EQUIPMENT 4,155 0 0 0 540-5802-775.93-36 BUILDINGS/STRUCTURES 913 0 0 0 • Capital Expenditures 7,345 0 0 0 •* MAINTENANCE 502,847 469,275 456,474 448,380 *** GOLF OPERATING 873,751 903,000 861,874 873,050 GOLF OPERATING 873,751 903,000 861,874 873,050 Item E : 1994 GOLF DIVISION MARKET PLAN HIGHLIGHTS �. Spartan Meadows A. Advertise in Chicagoland Golf . This has not been done in the past due in part to lack of advertising funds . It is a widely read golf publication in the Chicago area . B. Advertise in the Herald. Again, this has not been done in the past, but its readership is in a good demographic area relative to Spartan Meadows . C . Add phone book yellow page advertising to include Sprint telephone book. D. Continue to write for the Kane County Chronicle unless it can be worked out to write for the Herald. E . Continue the WRMN shoppers show but expand the commercials received in the trade outs . F. Continue to expand tournaments and outings . G. Expand Golf Card participation to include April, May and June to last years July through November. H. Do another direct mailing with Don Tech; possibly to stimulate early season play. I . Investigate signage on McLean Blvd. and Randall Rd. II . Wing Park A. Tie Wing Park into a promotion with Spartan Meadows and advertise it possibly in the Chicago Golf Magazine. B. Add phone book yellow page advertising to include Sprint telephone books . C. Mention Wing Park in the Kane County Chronicle articles ; perhaps through an "oldest area golf course" column. Page 2 . D. Use WRMN shoppers show as we did for Spartan Meadows last year--this was very effective. E. Initiate a senior discount day/time. F. Initiate a junior discount day/time . G. Initiate a ladies discount day/time. H. Advertise a price break for foursomes playing Saturday morning from 8 : 00 a.m. until 12 : 00 noon. I . Investigate. a Friday evening couples event tournament program. MKTGPLN. 94/TEXT081/GOLF S r Item: F PRELIMINARY TOURNAMENT SCHEDULE c Saturday, April 30 : Two-Ball Scramble Saturday, May 21 : Best Ball Championship Saturday, June 25 : Chapman Championship Saturday and Sunday, July 9, 10, 16 & 17 : Wing Park Match Play Saturday and Sunday, July 30, 31 and August 6 & 7 : Elgin City Golf Tournament Tuesday, Wednesday, and Thursday, August 2, 3 & 4 : Elgin Junior City Golf Tournament Sunday, August 21 : Couples Cookout Classic Saturday and Sunday, October 8 & 9* : Four Ball Scramble Saturday, October 22 : One Man Scramble *Subject to change Item G: 1994 Green Fee Rates WD9 WD9 WD18 WD18 WE18 WE18 R NR R NR R NR Spartan Mdws/ ' 93 8 . 50 11 . 00 11 . 75 16 . 50 21 . 00 25 . 00 / ' 94 9 . 00 11 . 50 14 . 00 17 . 25 22 . 00 26 . 00 Pinecrest -- 12 . 00 -- 21 . 00 -- 39 . 00* Bartlett 8 . 00 11 . 50 14 . 50 21 . 50 17 . 50 25 .50 Randall 10 . 00 14 . 00 15 . 00 23 . 00 20 . 00 26 . 00 Oak Club -- 10 . 00 -- 18 . 00 -- 40 . 00* Pottawatomie( 9 ) 7 . 75 9 . 75 15 .50 19 . 50 19 . 50 23 . 50 Burr Hill -- 12 . 00 -- 23 . 00 -- 26 . 00 St. Andrews -- 14 . 00 (twi ) 26 . 00 -- 114 . 00** Crystal Woods *Carts req'd on weekends **Foursome Note: Carts are generally $11/person GRNFEES . 94/TEXT081/GOLF Item H: Seeking A Businesslike Approach To Making Public Golf Pay i . Course quality, player - satisfaction and reasonable operating expenses are cited as among the key factors. . 'iri � i• �- J F 4s1f ••` '!04�. .. ..Ji<+r. 3e'` . "& aid ,40: =- :qt s'+' sa tt i , j t'.-4'- s- �. ,,v. s 11 •x.6 HV V� � lei., -. �- , -7-4,-,,,4.,..,;-„, � T P �7� - : r� -,---,:F.-A1:.,-,V4. 3. ' • Y.ct• -4 , ii�+ - :K'• 'LWabn as +- v4/, s s. ii fi4y yr. ' 1'.'7 / ¢i1 ; R _ � � ` ♦ .wilr1 ,z4• ,iCy '_isi- i ` it r :-.,- w r "!ii-° .s t '.;`*,-;;J:-""2,� � • 4• .„ "`� est, ,. . tr. z � i -t -• L , c — L.,...-...„ ..--- ,.. ,{.: .—...- ' 441 -1°' _ ra x ,:"4.c .!....,... .,. .-44.-2*.:"..:-."- -.- j - SGT`- ;*-`-'• !. Siy � .1. - 7 �,- >t "P` yeh a Y r eA�" i • i v-tv, Construction of new public courses may play a dramatic role in golf's future development to the year 2000 and well beyond. An understanding of the economics will remain essential for successful operations. Agreat deal of golf-related number of players and courses the huge projected demand translates newsprint has been directed at available. into profits for golf course developers. the national need for more The construction "shortfall"is primar- it simply will not be met. public golf courses. A recent article by ily a matter of economics. Golf courses Dr. Robert L. A. Adams of the Univer- require a lot of land — 120 or more Fixing The Economics sity of New Hampshire indicated that acres.They cost a lot of money to build There is a lot of money in public golf. because of demographics alone we but much of it is "frittered away." The would have to add 100 courses each Joseph A. Schulz investment rate of return can be signifi- year to maintain the current golf course candy improved in at least four ways. availability for the year 2000. If he — sometimes more than $4 million. • Charging optimum rates. assumes even a small increase in par- Few public courses make enough • Building/operating for less. ticipation rate, the number grows money to justify that kind of investment. • Avoiding paying taxes. dramatically. Each year golf courses are lost as • Cashing in on enhanced surround- The National Golf Foundation, for their owners conclude that their current ing land values. example, projects that about 387 new underlying land value is greater than the (Rate of return is a summary statistic courses will have to open annually to future value of the golf operation. Eco- relating the actual or projected after-tax correct the disparity between the nomic reality is straightforward. Unless Continued on p 70 66 Golf Course Management/March 1989 Higher rates normally lead to fewer This relationship between a chance PUBLIC GOLF from p 66 rounds and lower rates to more rounds. in rates and the associated chance - Whether a given change in rates play is the basis for setting rates. In cash flow on an investment to the eco- leads to greater or less revenue is deter- nomics that relationsnip is normally mined by the relative size of the rate depicted as a "demand curve" for :-.a amount of the original investment.) change when compared to the product showing the relationsh:p • associated change in number of rounds. between the price (rate) and the guar- Charging optimum rates. The rates For example. if rates go up by 10 per- thy sold. Each course has its own charged for public golf are, for the most cent and play drops by 5 percent. demand curve based on many factors. part. low. A great number of people revenues go up by 4.5 percent. including: play golf. Some have low incomes. but • The available pool of golfers. :'7-€.7 most do not. To set rates based on the level of interest. wealth. etc. low-income golfer is to leave an enor- • The quality and pricing of compet- mous amount of money on the table. Higher rates normally ing courses or other forms of recreation. Rates should be set to achieve maxi- lead to fewer rounds • The status and quality of the mum profitability. In the long run this and lower rates to course. approach leads to more and better golf more rounds. In any market. the courses that are courses and reasonable rates. best or among the best as compares Golf is a fixed-cost business. The with their competitors have relatively marginal cost of providing another small associated change in the amour: round is near zero. Profits are max- Because there is no associated increase of play. Courses that are at the bottom imized when revenues are maximized. in expenses. the entire increase in of the " eckin order" have relative,' Revenues are the product of average revenues goes to the bottom line. On e astir errand curves: a given rF'P rates 'green fees, cart fees. range fees. the other hand. if a 10 percent increase change will bring a relatively large Ql tetc.) and number of rounds. "Number in rates leads to a 15 percent drop in associated change in amount of pian. of rounds"is. itself. a functiono 'date." play. revenues go down by 6.5 percent. Continued on p 72 One Key Question To Pursue: i Y_ - - Municipal Green Fees — How Much? . < Dennis D. Lyon, CGCS City of Aurora Golf Division The City of Aurora, Colo.. Golf • The social service approach: and lose money, and the laws of Division is responsible for the main- Charge the lowest possible fee and economics eventually will prevail tenance and operation of four public provide the best course possible at a and cause the course to close. golf courses— three 18-hole courses minimum cost. The advantage to this approach is and one par-3 nine-hole course.The • The entrepreneurial approach: that in an area with a small popula- three 18-hole courses each play Charge as high a fee as the traffic will tion there may be few alternative about 60,000 rounds a year, and the bear to maximize revenues. courses. In this instance, it is hoped par-3 plays about 25,000 rounds a • The compromise approach: that enough players will support the year. - Charge a fee that assures a top golf course to keep it in business. Also. The issue of how much we in facility. This fee should fall some- in large metropolitan areas there government should charge for public where between the social service may be enough players who are golf is one that has been lamented approach and the entrepreneurial satisfied with a minimum- many times.There is one indisputa- approach. maintenance,low-cost golf course to ble law of economics, however,that Obvious advantages and disad- keep it in business. cannot be denied: Revenues (from vantages exist for each approach. The,obvious advantage to the whatever source) must equal or For example. in the social service entrepreneurial approach is that you exceed expenditures or you go out approach.the best possible course at can potentially raise a lot of revenue. of business. a minimum cost may be of such low assuming that you have a good golf Assuming that a municipal golf quality that golfers are not afforded course. Some of this revenue theo- course can obtain sufficient re- a pleasant golf experience. If the sources to stay in business, manage- condition of the course becomes bad ment can employ one of three basic enough, the course may lose players Continued on p. 72 approaches to set green fees: 70 Colt Course Management March roc' PUBLIC GOLF from p 70 A In the long term the poorer quality courseseLthose that cannot increase 'J rates) will be sold off for other uses. The L - as, `a better quality courses (those that can -,-z fx, increase rates) will continue to operate. ,,,, _ .- � `;j ' :• 'r (A significant associated phenomenon `- .:•-- 'i -- i is the fact that the better courses are x.',. �' 71 r •>#fa ._ -uu e -111'. `�� • E much more likely to hold their quantity ,t--,..... ' = - -`-.. +'*_ _ . ''-'�=,'� `-- - of play even during economic down- _ -, syr•••y }T, T :.,--,r7-77,.,--- turns. while the poorer courses bear the '-- .-" - ,, a - -..,4.711.-.;:i,-., `--' -. brunt of anyoverall loss of play.) "{- ' _ :4,..4-,..,,.-_,.:,--,...1-t _. = Higher rates do mean that some Many of today's municipal courses offer quality play along with handsome amenities people will not play at all and others will play less. This is unfortunate for those involved. but it is necessary for the eco- great mass of golfers that can afford demand. while others have -.: nomic well-being of public golf. To higher rates (but aren't being charged appreciable effect on either the rate that demand that golf be provided at less them) are unknowingly paying for their may be charged or the number of than its full value is to demand charity. current windfall with this long-term loss. rounds sold. This rate-of-return tnves:- Few. if any. golfers fulfill the norms for ment concept is even more significant getting charity. If a party that operates in golf than in real estate. a public golf course wishes to give char- Building'operating for less. Every Unlike other investments that have a ity to those that need it. it should charge real estate developer knows that certain significant capital investment at me full price. take the profits (from those features in new construction pay off in beginning and relatively small main- who can pay) and give some or all of tremendously increased sale or lease tenance costs thereafter. golf courses those profits to those in need. value while other features. with the are continuing capital investments. In the long term. artificially low rates same cost, add almost nothing to the Every golf course deteriorates dramat- reduce both the quality and availability sale or lease value. The same is true of cally during the off season. of public golf. New courses are not built. golf course design and operation. Notwithstanding the title given his Old courses (both good and bad) are Some features or services more than function. the golf course superintendent sold for real estate development. The pay for themselves in terms of increased Con:nuea or: ; - GREEN FEES from p 70 In the city of Aurora we use the make enough excess revenue from compromise approach to setting operations that funds are available retically could be used to subsidize green fees. Our fees are higher than when needed for big ticket infrastruc- other city programs, such as youth the social service approach — but ture maintenance items, including swimming or senior citizen activities. lower than what they could be. We new irrigation systems. clubhouse This money also could be used to remodeling, etc. build additional courses. One disadvantage to setting fees One disadvanta a of this lower than they could be is we are approach is that y setting high fees[::› not making sufficient revenue to for the sake of maximum revenue. . . . there is no fund an additional golf course any a m++nsingle best answer time in the near future. The fees we ublic service aspect of munici al set are. however. low enough that 2 to what green fees Qo f. Another disadvantage is that if almost all Aurora citizens who want we use golf revenues to subsidize should be. to play our courses can afford to do other tax-supported activities, such so. as youth swimming. are we not in In summary, there is no single best truth merely placing a "-golf tax" on answer to what green fees should be. our community's golfers? Should endeavor to be competitive with the Each municipal jurisdiction must set golfers pay higher taxes than other other municipal golf courses in the its own policies. My only hope is that citizens?The final disadvantage is if Denver metropolitan area. At the municipalities manage their golf vprices are too iq . a munici=p7y same time we always ensure that courses so they not only are golf - may not attract enough rounds to fees are high enough to allow us to courses today but are still golf pay expenses. provide top golf facilities. We also courses 100 years from now. 72 Golr Course Management March 1ago ations can become an ongoing financial paying owner of a public course. The:: drain. often have motives beyond immediate PUBLIC GOLF from p 72 New municipal courses almost return on investment. e.g.. econom,c always forgo this benefit on the theory development. which may be aided by spends relatively little time and money that they don't belong in the real estate the presence of ample public golfing "maintailing" the status quo. He development business. More often than facilities. In many cases they have large spends his time and resources rebuild- not a new municipal course is built reserves of property that may be deve- ing or improving the course. If he does without any contribution by the sur- loped as golf courses without loss of a good job from an investment stand- rounding landowners. even if they are "green space." In fact. such facilities point. his "better" course makes the developers. This need not be true. may be viewed as bringing more of the owner-operator more money. citizenry to nature. Cutting current cost to a minimum The Basis For A Deal Unfortunately. most municipalities can prove to be a risky alternative. The municipality (or not-for-profit Although this "cost conscious" corporation) and the real etate approach may appear to be desirable in developer want the same thing — a _ the short run. it often has disastrous new golf course —for different reasons. long-term results. The developer wants the enhancement of his surrounding land values. but he doesn't really want the headache of The future of public golf Avoiding taxes. Legal tax avoidance building and operating the course. The is in the hands of is only available when course profits are muncipality or not-for-profit corporation municipalities and not- taken by a governmental unit or a tax- wants an economically justifiable public for-profit corporations.exem t not-for-profit corporation. golf course. Because much of the cost of construc- Both parties can get what they want tion is not depreciable. virtually all oper- if they are willing to share. The land- ating cash flows are taxed. If we assume owner/developer can give the land �. a combined federal/state tax bite of 40 where he wants the course to be built percent.the value of tax-free cash flows to the municipality/not-for-profit corpo- have a very narrow view of the role of is 67 percent higher than the value of ration. A sophisticated developer may government in providing recreation. those same cash flows if taxed. It is hard also pay the cost of design of both the They seem to believe that "profit" is a to overstate the significance of this course and clubhouse. In this way he dirty word. Rate of return is a foreign assures himself of a course that best fits concept. There is a total lack of corn- his needs both in terms of layout and prehension that certain recreational image. He also creates a lot of good- facilities such as golf courses can not will that may go a long way in resolv- only be self-sustaining but can provide . . . . a truly profitable ing tough zoning issues. the funding for other desired but public golf course can At the same time. the municipal- unprofitable facilities or services. For fund many other needed ity/not-for-profit corporation has sub example. a well-run golf course opera- stantially reduced its total cost of con- tion could fund the annual operating facilities and services . . . struction of the new course. It has cost of the entire athletic program for gotten the services of a first-rate golf the school district or fund the book pur- course architect that it might not other- chases necessary for the local library wise have been able to justify. It has system. gotten a better clubhouse than it other- If this kind of approach won't work factor. Theoretically. a municipality or wise would have built. These two fac- because. for example. all municipal not-for-profit corporation could make a tors give the course. at least initially. a revenues must be brought back into the lot of money buying and operating the better image and potential for higher general fund, the alternative of a not- privately owned. public courses in its profits. for-profit corporation should be consi- area. Such profitable investments provide dered. Through such a corporation the • needed/desired facilities and services at municipality can acquire/nurture not Enhanced land values. The building effectively no cost to the taxpayer. In only the creativity and entrepreneurial of a golf course substantially increases fact. a truly profitable public golf course attitude that it otherwise discourages but the value of the surrounding land. This can fund many other needed facilities also provide a second funding source benefit may be "cashed in" by either and services without the need to raise that may support desired projects f"` selling or leasing the property at its new taxes. through charitable contributions. In Ba!- higher value. Many new courses are Conclusion timore. this same not-for-profit , being built by developers just to acquire The future of public golf is in the approach has caused dramatic success this benefit. Unfortunately. developers hands of municipalities and not-for- in not only the public golf operation but sometimes know little about building or profit corporations. They have substan- the National Aquarium and the Science running a golf course. and course oper- tial tax advantages over the private. tax- Center. _ 74 Colt Course Management.March 1989 Elgin Municipal Golf 1994 Staff Goals and Objectives Draft: January 25, 1994 grounds : 1 . Bring in all renovated areas to a high level of quality. 2 . Place extra emphasis on improving all fairways . 3 . Develop and implement a strategy to control weed infestation in the roughs . 4 . Begin a full 18-holes per mowing (per occurrence) fairway program. 5 . Establish an acceptable "heights of cut" program. 6 . Continue to improve the long-term care of the greens . 7 . Enhance the Audubon Sanctuary status and implement other management techniques of birds on the courses . Administration: 1 . Increase play to a level as suggested in the EMGC 1994 Goal/Plan and Action. 2 . Bring in the 1994 budget at zero deficit or as a positive return. 3 . Improve merchandising to a higher margin of 5 to 10%, and in a more controlled and efficient manner. 4 . Improve customer relations/services via enhanced staff participation. 5 . Aggressively follow and enhance the marketing plan developed by the golf committee. 6 . Expand the tournament program by 10% . 7 . Make significant improvements to a city-wide junior golf program. 8 . Improve the facilities appearance and comfort for patrons . 9 . Work to increase/improve the availability/use of outings .