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Home My WebLink AboutIR 7039 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7039 To the Mayor and Members of the City Council July 30, 1985 Subject: PROPOSED GOLF FEE INCREASES This report is in response to questions that were asked by the Mayor and Council Members during the July 23, 1985 Pre-Council Meeting. The questions have been restated as best they were remembered. Mayor Bolen Question: How is the Golf Division doing in merchandise sales? Response: Golf Division sales have evidence continued improvement since the initiation of the Enterprise Fund. Division-wide sales are as follows: October 1, 1984 through June 30, 1985 Merchandise and Beer $ 305,000 Total Revenue $1,629,781 Question: What dollar amounts are we collecting per player by round in terms of beer, vending machines, concessions, and shop merchan- dise? How do we compare with Lake Arlington? Response: The following chart shows a comparison of total revenue and total expenditures per round. Methodology used in determining these figures included all revenues received per course divided by total number of rounds per course. Expenditures included all expenses such as salaries, equipment, indirect charges, water, electric carts, merchandise, etc. The comparison of Fort Worth courses with Arlington is diffi- cult. Some expenditures used in Fort Worth are not included in Arlington's gross expenditures. These are water, electric carts, merchandise, indirect charges, etc. Comparison Per Round: 1983/84 Total Total Revenues Expend. Merch. Beer Concess. PecanValley $9.22 $ 7.56 .70 $ .51 $ .19 Rockwood 8.48 7.88 .72 .66 .19 Meadowbrook 9.14 8.61 1.07 .49 .19 Z. Boaz 8.49 10.81 .97 .33 .24 Sycamore Creek 4.72 10.84 .28 .44 .19 Lake Arlington* 8.68 5.19 .78 .00 1.03 Average Revenue Per Round $8.68 Average Expenditure Per Round 8.59 Average Merchandise/Sale Per Round 1.32 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No 7039 - Page 2 Prig, To the Mayor and Members of the City Council xx" Subject: PROPOSED GOLF FEE INCREASES +ATE Comparison Per Round: 1984185 (as of dune 30, 1985) Total Total Revenues Expend. Merch. Beer Concess. PecanValley $8.09 8.64 .88 .50 .14 Rockwood 8.68 8.65 1.03 .71 .15 Meadowbrook 7.76 8.57 1.13 .49 .17 Z. Boaz 8.02 11.42 1.18 .38 .16 Sycamore Creek 5.13 11.15 .33 .56 .13 Lake Arlington* 8.67 5.84 .97 .00 1.22 Average Revenue Per Round $8.08 Average Expenditure Per Round 9.43 Average Merchandise/Sale Per Round 1.51 Response: Do merchandise sales indicate that they are of value to the pro shops? Answer: Yes, the convenience of shopping on the course is offered as a service to the golfing public. Substantial revenues are also contributed to the Golf Program by merchandise sales. Response: Why do we receive complaints about trash and litter on the courses? Answer: Litter is collected daily at each golf course. Trash containers are located in key areas on the course. Additional containers are located at tees, pro shops, maintenance buildings and cart barn facilities. If current collection methods prove inadequate, pick-up will be increased. Council Member Russell Lancaster Response: What are the Golf Division's operating figures for this year and next year? Answer: Re-estimated Expenditures for 1984185 $2,472,341 Re-estimated Revenues for 1984185 $2,480,087 Proposed Budget for 1985186 $2,881,195 *Estimated Revenues for 1985/86 $2,886,753 *Figure does not include proposed fee increase. Response: Where are monies being expended? f Answer: Approximately 47% of the current Golf operating budget is ex- pended on salaries and employee benefits. Supplies and contrac- tual services constitute another 45% and a little over 8% is spent on capital improvements. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS---- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7039 - Page 3 Z i JoRp To the Mayor and Members of the City Council Subject: PROPOSED GOLF FEE INCREASES During this fiscal year, approximately $70,000 has been spent on cart trails while another $100,000 has been executed for maintenance of equipment and $67,000 into new cart batteries. Question: In the proposed 1985/86 budget, how will the fee increase be used? Response: The increase in fees will expand our existing maintenance efforts and help offset rising costs. In addition, the Golf Fund must recoup an existing negative fund balance for 1983/84 of $45,000. On the positive side, a major capital improvement program is planned. Over $1 million would be designated for cart trails. Another $1.5 million would be earmarked for building and facility improvements. Approximately half of the anticipated increase would pay debt service on these improvements. Council Member Bert Williams Question: Why are ladies' greens fees discounted? Response: Ladies' fees were discounted as a promotional effort suggested by the Ladies Golf Association. Park Board and staff concurred, thinking this discount would attract greater individual and organized play. Question: Why was there a month's delay in the greens being open for play? Response: After all the greens were replanted in the summer of 1984, a decision was made not to overseed them but to overseed the tem- porary greens. -Therefore, the new greens planted in bermuda simply did not "green-up" as quickly as the temporaries which were overseeded with cool season grasses. As soon as the warm weather arrived, the newly rebuilt greens were opened. Question: Why are the Meadowbrook greens in such poor condition? Response: The Meadowbrook greens were replanted and reopened at approxi- mately the same time as the other courses. When they were first opened in the late spring, it was believed that they were in excellent condition. During the past few months, play has been high. It may be that the greens are now showing the effects of the heavy traffic. Council Member Louis Zapata Question: Have all golf associations been notified of the proposed fee increase? LISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7039 - Page 4 ,%1kTfR, 0)?p To the Mayor and Members of the City Council Vx Subject: PROPOSED GOLF FEE INCREASES 107 Response: The Golf Division believes that a reasonable effort was made to both the general public and the golf associations. During the first few months of summer, several articles appeared in the Star 7- Telegram concerning the possibility of a fee increase. On Ju y 20, 985, a Star Telegram story stated that the City Council would consider —new gol e s at the July 23 Council Meeting (See Attachment A) . In an open meeting in May, the Park and Recreation Advisory Board had passed a recommendation for a fee increase. However, based on the Council 's concern, the attached notice and fee schedule were posted in all golf shops and mailed to the following organizations on July 24, 1985: (See Attachment B) Meadowbrook Mens Golf Association Meadowbrook Ladies Golf Association Rockwood Pan American Golf Association Pecan Valley Mens Golf Association Fort Worth Ladies Golf Association Fort Worth Golf Association, Inc. Council Member Jim Bagsby Question: Why didn't the Golf Division fulfill its promise to develop Syca- more Creek after the completion of Pecan Valley Golf Course? Response: It was never the Division's expectation to completely fund the expansion and improvement of Sycamore Creek Golf Course with the revenues from Pecan Valley but rather it was planned to proceed with monies from General Obligation or Revenue Bonds. Currently the expansion and improvement of Sycamore Creek is proposal in the upcoming 1986-88 Capital Improvement Program. Plans include a complete mid-length 18-hole golf facility com- plete with fencing, landscaping, full service pro shop, paved parking lot and maintenance building. Golf management strongly supports the development of Sycamore Creek. It will be an important addition to the golf system and will serve as the home course for both the Junior and Senior Programs as well as for Texas Wesleyan' s golf program. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7039 - Page 5 pP T I*,,o 0-foRp To the Mayor and Members of the City Council x Subject: PROPOSED GOLF FEE INCREASES Council Member Kathy Wetherby Question: Why can't the Golf Division do away with the private carts immed- iately? Why wait until January 1990? Response: Staff believes that it is desirable to provide cart owners a reasonable time to be made aware that private carts are no longer to be allowed on public golf courses. Council Member Wetherby suggested that carts be allowed until 1988 and this is acceptable to staff. Remembering that private golf carts do negatively im- pact the Golf Program, the sooner this practice is discontinued, the better. Council Member Bill Garrison Question: How many private carts are currently used on the golf courses? Response: Currently, no figures are available to determine how many indi- vidual carts are privately owned. However, numbers are available on total private carts used on Fort Worth municipal golf courses. . '4 Fiscal Fiscal Year 1983/84 - 9,058 October 1, 1984/June 30, 1985 6,794 If additional information is required, it will be furnished upon request. 4thl�uglas Harman Attachments ri ty Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS