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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8317
May 1, 2001
To the Mayor and Members of the City Council
Page 1 of 2
f47S SUBJECT: GOLF REVENUES AND WEATHER
Since the beginning of the current fiscal year, we have experienced approximately 29.08 inches of
precipitation. This is 14.65 inches or 102% over the average amount of rainfall historically
experienced during this same time period. In addition, this winter has been cooler than what has
been experienced over the past several years. For example, November, a usually mild and
excellent revenue month, this past year was the fourth coldest on record. As a result of this
unusually cool and wet weather, our golf rounds have declined dramatically and correspondingly
our revenues suffered.
In many respects, this has been a blessing, given the fact that area lakes were down almost 60% of
capacity and severe water restrictions were looming on the horizon. However, for 'the Golf
Enterprise Fund, -this wet and cool weather has had a negative effect on play and resulting
Through the first six (6) months of this fiscal year, golf rounds are down approximately 28% and
revenues are 29% below budgeted projections. Total rounds to date are at 76,826 versus 110,644
for this same period last year. Rounds translate into revenues, and thus revenues are similarly
down by approximately $523,742 from last year through this same six-month period.
Of course Fort Worth golf courses are not the only courses suffering from this weather-related
downturn in revenues., In a survey conducted by staff, in all major Texas cities and throughout most
of the country, rounds and revenues are down sharply. Attached are an outline of the information
received from a survey conducted of other golf courses/agencies and an article from the Fort Worth
The impact to the Golf Enterprise Fund will be serious. Revenues are now projected to be
between 20 and 25 percent below budgeted levels, however, this could go higher if the wet weather
continues, especially on weekends during the Spring. Consequently, the Golf Enterprise Fund may
require a significant appropriation to balance the current year's budget. Staff has been proactive in
trying to lessen the impact, by holding vacant positions open and holding down operational
expenses where possible.
The staff believes this is a worst case scenario. If the weather improves and when the Pecan
Valley "River" course opens, some additional rounds and revenues will be realized to decrease the
gap between projected and actual revenues. However, we wanted to make you aware of this
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8317
To the Mayor and Members of the City Council
Page 2 of 2
fSTS SUBJECT: GOLF REVENUES AND WEATHER
Attached' is the Golf Enterprise Fund budget (as amended by City Council on February 20, 2001)
and the revised estimate. As of September 30, 2000, the current cash equivalents in retained
earnings is $841,130, with projected and re-estimated earnings listed on the summary.
Staff will provide the City Council an update on the status of revenues in the Golf Fund in late July,
once third quarter numbers are reconciled.
Should you have any questions regarding this report, please contact Richard Zavala, Parks and
Community Services Director or Libby Watson, Assistant City Manager.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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EFFECTS OF WEATHER ON GOLF ROUNDS AND
REVENUES 2000-2001
• Golf Operations in the cities of Arlington, Dallas, Euless, Grand Prairie, Houston and San
Antonio are all reporting decreases in rounds and revenues of 29% to 35%.
• Rounds played dropped 21.7 % nationally in November and 17% in December from the
previous year. *
• All geographic regions experienced decreases:
Most significant in November were West North Central (68.6), East North Central
(50.6), West South Central (Texas, Oklahoma, Louisiana) (39.9).
Biggest declines in December were in the West North Central (85.7), East North
C'
Central (73.4), New England (67.6), Middle Atlantic (65.2), West South Central
(Texas, Oklahoma, Louisiana) ( 45.1). *
• Eleven metro areas experienced dramatic decreases in temperatures combined with huge
increases in the number of wet days. These were Atlanta, Cleveland, Buffalo, Dallas,
Houston, Kansas City, Minneapolis, Philadelphia, Pittsburgh, St. Louis and Washington
D.C. **
• Reports show that November and December combined were the coldest months on record
for the United States, especially in the center of the country. East of the Rockies
temperatures were substantially below average in all the golf states.
* Golf Datatech, Kissimmee, FL
Fred Fox, Pres., CEO, Planalytics Research
Kevin Trenberth, National Center for Atmospheric Research, Boulder, CO
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FY 2000 - 2001 BUDGETED,
REVENUES AND EXPENDITURES
REVENUES % EXPENDITURES %
GOLF ADMINISTRATION $ 156,800 3% $ 801,526 15%
NON-DEPARTMENTAL $ - 0% $ 574,760 11%
PECAN VALLEY MAINTENANCE $ - 0% $ 733,441 14%
PECAN VALLEY PRO SHOP $ 1,405,215 27% $ 400,276 7%
PECAN VALLEY SNACK SHOP $ - 0% $ - 0%
Z-BOAZ MAINTENANCE $ 0% $ 464,661 9%
Z-BOAZ PRO SHOP $ 803,500 15% $ 307,717 6%
Z-BOAZ SNACK SHOP $ 85,438 2% $ 42,469 1%
MEADOWBROOK MAINTENANCE $ - 0% $ 460,327 8%
MEADOWBROOK PRO SHOP $ 1,344,835 25% $ 342,733 6%
MEADOWBROOK SNACK SHOP $ 0% $ - 0%
ROCKWOOD MAINTENANCE $ - 0% $ 496,824 9%
ROCKWOOD PRO SHOP $ 1,126,228 21% $ 341,709 6%
ROCKWOOD SNACK SHOP $ - 0% 0%
SYCAMORE CREEK MAINTENANCE $ - 0% $ 262,202 5%
SYCAMORE CREEK PRO SHOP $ 355,940 7% $ 203,843 4%
SYCAMORE CREEK SNACK SHOP $ - 0% $ - 0%
TOTAL $ 5,277,956 100% $ 5,432,488 100%
$ (154,532)
Re-estimate (as of March 31,2001) $ 4,592,217 87% $ 5,383,942 99%
$ (791,725)
Cash in Retained Earnings (as of 9130100) $ 841,130
Estimated Cash End of Year(as of 9/30/01) $ 49,405
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