Members of the Golf Association, otherwise known as "The Royalty" have been spreading lies by telling people that golf is breaking even as a result of their membership dues and trail fees. According to a Town financial document, this is TOTALLY FALSE.
Fiscal year 2016/2017 is the last complete year that we have to work with. The Community Center Fund (CCF) is divided into two entities: Contracted and Town.
The Town’s Portion consists of revenues provided by:
• Fitness member dues
• Daily drop ins
• Recreation programs
• Swim/Tennis Lessons
• Facility rental income
• Concession sales.
The Town's expenses come from: Personnel, Operations and Maintenance.
The Contracted Portion (Troon) consists of revenues provided by:
• Golf revenues
• Member dues (golf)
• Tennis revenues
• Food and Beverage
• Merchandise and Other.
The Contracted expenses come from: Personnel, Operations and Maintenance, and Equipment leases.
There are additional revenues coming to the CCF that are derived from Sales Tax Revenues, General Fund Transfers ($350,000 in FY 2016/17), Real Property Rental income, Sale of Assets, and Miscellaneous.
During FY 2016/17, the Contracted revenues were $2,975,096. This number includes $725,611 that was provided by member dues. The Contracted expenses were $5,488,034...resulting in a LOSS OF $2,512,938.
Since when is 37% and 24% considered as “breaking even?”
The proposed FY 2016/17 budget forecasted $1,153,655 in member dues. At only $725,611, the member DUES fell short of this mark by 37%. Total CONTRACTED REVENUES are $2,975,096 of which members provided $725,611 or just 24%.
To be fair, the Town is operating 45 holes of golf. A member course would only utilize 18 holes. The five Tucson 18-hole courses average about $1.3 million each to operate. Tucson spends less in water and in management fees then Oro Valley. However, if the members desire their own 18-hole course, they need to provide at least $1.3 million, NOT just $725,611.
Town admits that golf membership is declining
The current fiscal year budget forecasts member dues to be $959,000. (That’s $194,464 less than last year's forecast; an admission by the Town that golf membership is declining). Even with the reduced forecast, as of January 2018 (58% through the fiscal year), the members have provided only $465,500 which is 48.5% of the expected dues.
The members are NOT providing the income required to support their own course. We need to only keep 18 holes of golf, eliminate the members, and become a strictly municipal course. If that doesn’t work, then stop golf all together. We know the current model is not working as we have been doing this for three years with no positive results. In fact, there are less members now than when the Community Center opened in May 2015.