Monday, December 14, 2015

Guest View-MIke Zinkin: November's Golf Losses Worse Than Plan... Again

Well, the November golf numbers are in, and not to anyone's surprise, the town once again failed again to make the revenue forecast.

Golf Losses Estimated At $1.4 million for the first five months of this year!
Total number of rounds was 16% less than budget for the month of November.  The average revenue per round was 8% less than plan at $37.49. Combining these shortfalls, total revenue of $197,310 was 23% less than budget.

For the fiscal year (July 2015 - November 2015) actual revenue results are lees than the Town Manager's forecasts are by $351,619.37.

Page 127 of the Town Manager's budget shows that expected (forecasts) losses from July - November are $1,075,185. Add to that the added loses, which are higher that forecasts, and golf has lost an estimated $1,426,804.37 in the first 5 months of the fiscal year.

This is outrageous
One of the reasons offered for not making the forecast was that there were 9 days when frost limited available play. I guess frost is a new phenomenon that was never figured in the forecasts. In prior budget years the Town Manager always forecasted toward the worse case scenario, therefore, we were prepared for things like frost delays. This year is different. The golf forecast appears to be the best case scenario.

We can not continue to do business like this
An alternative will be offered in the January 6 Council Meeting. We will be discussing the possibility of entering into an agreement with Integrity Golf, who might agree to a triple net lease of the golf. This will require terminating our contract with Troon. Whether Integrity Golf is the answer or not, we must find a way to stop the red ink this irresponsible real estate decision is causing.

The November report states that we now have 252 total golf memberships, of which 245 are Town residents. Is it right for the 41,000 people in Oro Valley to supplement golf for the sake of 245 residents? The golf members accounted for 2,789 of the 5,263 rounds of golf, or 52%.

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