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HomeMy WebLinkAboutIR 10273 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10273 May 14, 2019 To the Mayor and Members of the City Council Page 1 of 1 SUBJECT: ROCKWOOD PARK GOLF COURSE GREEN FEE RATE INCREASE On August 30, 2016 the City Council approved M&C G-18803 adopting Fiscal Year 2017 fee increases for Golf, Public Events, Aviation, Library and Parks and formally designating certain personnel to act on behalf of the Financial Management Services Department in collecting fees and issuing licenses. M&C G- 18803 allows the green fee structure at Rockwood Park Golf Course (RWPGC) to remain within a range of authorized rates as established by City Council. As allowed by M&C G-18803, several of the green fees rates at RWPGC will increase June 1, 2019. After the increase the green fee rates will remain below the maximum rate authorized. The City of Fort Worth owns and operates five golf courses, with RWPGC being the premiere course since the re-opening June 2017. Rates at RWPGC are set approximately 30% higher than the River course at Pecan Valley. Prior to the $5.4M renovation (CY16 & CY17), the course produced 25,802 rounds and experienced a loss of ($232,135) in FY15. In the first full year of play (FY18) there was an increase of 35% in rounds with 40,000 being played and the course saw financial gains of $462,750. The last green fee increase at RWPGC was October 2, 2017. During the 2020 Budget preparation process, a survey conducting green fee benchmarking with our competition was completed and it was determined there was ample space to increase rates without jeopardizing rounds. The new rate increases, effective June 1, 2019, for RWPGC are listed below for your information. RWPGC will also establish a separate rate for Fridays, differentiating Fridays from Monday through Thursday. Rounds played on Fridays are similar to weekend rounds and it is a common practice in the golf industry to have a higher fee, which was discovered in our market study. $1 Monday through Thursday from $29.00 to $30.00 $3 Friday from $29.00 to $32.00 $2 Friday mid-day from $22.00 to $24.00 $1 Friday evening from $15.00 to $16.00 $3 Sat/Sun/Holidays from $40.00 to $43.00 $2 Sat/Sun/Holiday mid-day from $30.00 to $32.00 Senior and junior green fees will remain unaffected The additional revenues from this increase is estimated at $16,300 for Fiscal Year 2019. Staff will advertise the new rates to the public by posting at the course as well as on the golf website. If you have any questions concerning this information, please contact David Creek, Acting Park and Recreation Director at 817-392-5711 or david.creek@fortworthtexas.gov David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS