The financials for August 2019 are posted and Troon lost $422,049. The Community portion of our investment made $27,508. Of interest is that there was a capital outlay of $2,347 for benches on the tennis courts.
The total rounds of non-member golf for August 2018 were 1,774 on 36 holes of available golf. For comparison, a public course within 5 miles of the Town-owned courses had 2,626 rounds of play on 18 holes, which is 67% higher than what Troon could provide.
Keep in mind that the goal is for 40,000 rounds of play for each course (or 80,000 rounds total for both 18-hole courses.) To accomplish this, there needs to be an average of 3,333 rounds of golf played per course per month or 6,666 total rounds per month for both courses. In fiscal year 2018/19, there was a total of only 33,914 rounds of outside play. This is more proof that an 18-hole option can be sustainable, but a 36-hole option is not.
Another goal that has been established is for the golf membership to reach 275. This has been revised from the goal of 318 members that was set in 2015. As of the end of August 2019, there were still only 237 members.
Only $106,500 budgeted for capital improvements for the entire year What is troubling is that the Town Manager has budgeted only $106,500 for capital outlay for the entire fiscal year. There are NO plans to make the facility ADA compliant. The “scheduled” capital improvements are for:
• more benches for the tennis courts
• replace existing strength machines
• replacing some mats and weights
• purchasing outdoor chairs and benches
• and $90,000 for tennis court improvements
Ms. Jacobs would like to close the Overlook (which lost $13,378 in August 2019) and move it downstairs, and fix the irrigation problems on the courses, along with other needed improvements. How will all of this be accomplished with $106,500?
Town leans towards financing over pay-as-you-go
This is why Jacobs cannot allow for the “pay as you go” option that Mayor Winfield proposed at the October 2nd meeting. In a 4-3 vote (with Councilmember Jones-Ivey voting along with Solomon, Rodman, and Pina) the “pay as you go” plan was removed, and staff was instructed to come back with options for financing the capital improvements. The term “financing” implies that one has to borrow to pay for the needed improvements. We will wait and see what financial options Ms. Jacobs brings to the table (Bonding? Borrowing from the General Fund?) and whether the Council will allow for her options to become reality.
Right now, the golf investment is counting on $125,000 from the HOA’s that align the courses because the investment cannot stand on its own merit. Don’t be surprised if Ms. Jacobs tries to combine the Community Center Fund into the General Fund, like she tried to do earlier this year. Moving the CCF into the General Fund will remove all transparency and hide its financial status.
 |
| Community Center Fund - August 2019 |
 |
| Troon Cash Flow |
---
Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.
