Wednesday, March 28, 2018

The Watchdog Report: Community Center Fund - January 2018 YTD Financial Status

January marks 58% of the way through the fiscal year.

Troon Golf and Overlook Restaurant still losing money
As of January, Troon's revenues (Golf plus Food and Beverage) were 53.6% of forecasted for the fiscal year. Troon operating expenditures were 60.5% of forecasted.


• Budgeted for $3.3 million in revenues. Actual revenues were only $1.8 million.


• Budgeted for $5.2 million in expenditures. Actual expenses $3.1 million.

Troon’s losses for the first 7 months in each fiscal year:

• July 2015 through January 2016:   Troon lost $1.8 million.
• July 2016 through January 2017:   Troon lost $1.6 million.
• July 2017 through January 2018:   Troon lost $1.1 million.

The first 7 months of this fiscal year are looking better than previous, but they’re still losing money. The Council will tell you that this is a good trend and I guess you could look it that way if it wasn’t YOUR money.

The Overlook Restaurant continues its losing tradition. It lost $16,648 in January and has lost $82,430 so far this fiscal year. This averages to over $11,000 per month.

Rounds played
The amount of rounds played in January 2018 was 5,269. This averages to 170 rounds/day on 45 holes of golf. For some comparison, surrounding courses in January averaged over 190 rounds/day on 18 holes of golf.

There were 2,913 rounds played by golf members (the one’s whose golf games the taxpayers are subsidizing). Outside play was only 1,839 rounds (or an average of 59 rounds a day). Also of note is that there were 517 complimentary rounds.

The Royal Treatment
Do YOU like paying for golf members to enjoy reduced membership rates? Do YOU like paying for other people to enjoy FREE GOLF? I challenge anybody to tell me of another Town anywhere in the world whose residents are kind enough to subsidize a private golf club for other residents. Why are certain residents treated like royalty?

Membership has dropped
In January 2016, there were 257 members of the Golf Association. In January 2018, the membership has dropped to 249. Remember when Troon was hoping for 318 members by December 2015? I’ve asked this before and I’ll ask it again… Why do we still cater to the members when their support of the investment is dwindling?

Options for a Community of Excellence
Go strictly municipal with only 18 holes of golf and no memberships. If this doesn’t work, then eliminate golf altogether and create a linear park for everyone to enjoy. Make Oro Valley a Community of Excellence with 340+ acres of linear trails. Trails that can be utilized and enjoyed by ALL residents.

The dedicated sales tax revenues through January 2018 were $1,313,971 and the Town still lost $75,729. Again, if we minimize the golf drain, the sales tax will then cover the expenses.

Seeing red
The Community Center Fund is still $107,255 in the RED despite having only spent 31% of the promised capital outlay. How are they going to make their annual $120,000 loan repayment to the General Fund? (For our new LOVE readers, the Town Council borrowed $1.2 million from the General Fund to start the Community Center Fund in 2015 with a promise to pay back $120,000 per year for 10 years. They have repeatedly failed to make this commitment.)

Town Revenues and Expenditures
The Town’s portion of the Community Center (Fitness Center, Swimming, Recreation Programs) was budgeted for $777,580 in revenues but brought in only $515,665. This included an expectation of $23,000 in daily drop-in fees vs. an actual of $17,520. It also included an expectation of $614,000 in member dues vs. an actual of $422,920.

Operating expenditures were budgeted for $1,030,406 but the actuals were less at $591,394. This is only because they have not spent what they promised on capital improvements and the facility is still not ADA compliant after nearly three years of ownership.