Golf course costs versus fireworks costs
Costs to support the city-owned Black Gold Golf Course continue to impact City Council budget decisions as the elected officials grapple with lesser expenses related to such long-standing traditions as the July 4 fireworks show and the October Fiesta Day parade.
A scaled-down version of the city’s 20-year-old July 4 celebration survived on a 3-2 vote last week, one month after $1 million in golf course turf changes were approved, also 3-2.
Decisions regarding the parade, which was canceled for the second time in 41 years last year, and future July 4 festivities, easily the most-attended city events in past years, will be made in coming months as a budget for the fiscal year beginning July 1 is discussed.
This year’s 15-minute fireworks display will cost $23,000, the same as last year, but the council wants $37,000 in other expenses related to day-long Veterans Park activities cut back, possibly including shorter hours, free or recorded music and no stage rental.
Previously, the council dedicated $14,500 earned from leasing the vacant “poppy field” property at Imperial Highway and Yorba Linda Boulevard for pumpkin and Christmas tree sales to the July 4 event.
Meanwhile, work begins on turf renovations at Black Gold, which involves a five-year transition of rye to Kikuyu grass, for $1,216,405, and adding Bermuda grass around tee boxes for $140,000, with $300,000 in water and other savings anticipated.
Hit to this year’s city budget will be $224,145, with expenses ranging from $155,325 to $184,280 the next four years. The first-year tab is a loan from city reserves, with future costs included in annual city operating budgets.
The city already has loaned Black Gold $4.7 million since 2000. Interest has been waived since 2007-08, amounting to $226,943 in lost payments through 2008-09, with this year’s forgiven interest yet to be calculated. A total $1,102,274 interest was paid in past years.
The latest available financial report from course management KemperSports shows a 1.8 percent increase in total rounds played but an 8.3 percent revenue drop for the first seven months of the current fiscal year compared to the same period last year.
Through January, 28,398 rounds were played, up from 27,889, as revenue declined from $3,245,986 to $2,975,288. One success: a “beer of the month” program sold seven kegs and 799 cans for a $1,300 payment from Heineken.
In a separate report, course General Manager Scott Heyn noted that 2,432 free rounds were played in a recent 12-month period, most for promotion, but he added, “There is never a case where a complimentary round displaces the ability to generate revenue.”
Nancy Rikel, Mark Schwing and Jim Winder voted for the successful July 4 motion, with John Anderson and Jan Horton opposed. Horton, Schwing and Winder supported the turf switch, with Anderson and Rikel opposed.
A scaled-down version of the city’s 20-year-old July 4 celebration survived on a 3-2 vote last week, one month after $1 million in golf course turf changes were approved, also 3-2.
Decisions regarding the parade, which was canceled for the second time in 41 years last year, and future July 4 festivities, easily the most-attended city events in past years, will be made in coming months as a budget for the fiscal year beginning July 1 is discussed.
This year’s 15-minute fireworks display will cost $23,000, the same as last year, but the council wants $37,000 in other expenses related to day-long Veterans Park activities cut back, possibly including shorter hours, free or recorded music and no stage rental.
Previously, the council dedicated $14,500 earned from leasing the vacant “poppy field” property at Imperial Highway and Yorba Linda Boulevard for pumpkin and Christmas tree sales to the July 4 event.
Meanwhile, work begins on turf renovations at Black Gold, which involves a five-year transition of rye to Kikuyu grass, for $1,216,405, and adding Bermuda grass around tee boxes for $140,000, with $300,000 in water and other savings anticipated.
Hit to this year’s city budget will be $224,145, with expenses ranging from $155,325 to $184,280 the next four years. The first-year tab is a loan from city reserves, with future costs included in annual city operating budgets.
The city already has loaned Black Gold $4.7 million since 2000. Interest has been waived since 2007-08, amounting to $226,943 in lost payments through 2008-09, with this year’s forgiven interest yet to be calculated. A total $1,102,274 interest was paid in past years.
The latest available financial report from course management KemperSports shows a 1.8 percent increase in total rounds played but an 8.3 percent revenue drop for the first seven months of the current fiscal year compared to the same period last year.
Through January, 28,398 rounds were played, up from 27,889, as revenue declined from $3,245,986 to $2,975,288. One success: a “beer of the month” program sold seven kegs and 799 cans for a $1,300 payment from Heineken.
In a separate report, course General Manager Scott Heyn noted that 2,432 free rounds were played in a recent 12-month period, most for promotion, but he added, “There is never a case where a complimentary round displaces the ability to generate revenue.”
Nancy Rikel, Mark Schwing and Jim Winder voted for the successful July 4 motion, with John Anderson and Jan Horton opposed. Horton, Schwing and Winder supported the turf switch, with Anderson and Rikel opposed.
posted by Jim Drummond at 12:00 PM
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