Black Gold Golf Club revenue shows uptick
Critics who often tag the city-owned Black Gold Golf Club as a “black hole” due to the amenity’s annual subsidy from strained municipal coffers might be relieved to learn the club’s bottom-line has improved markedly in the first three months of this fiscal year.
Of course, Yorba Linda’s true-conservative adherents to limited government still decry city ownership of a golf course as an anathema to private enterprise--whether or not the club is profitable--but a turn-around could be good news for a cash-strapped city budget.
A report on Black Gold, including a wrap-up of the 2010-11 fiscal year, is scheduled for a Dec. 6 City Council meeting, according to City Manager Steve Rudometkin. Officials also should consider setting a timeline to end the city subsidy and pay back city loans.
Expenditures at the course for the 2011-12 fiscal year are estimated to be about $5.8 million, not including a $1 million depreciation charge, against projected revenue of about $5.2 million, resulting in a $635,900 subsidy from the city’s general fund.
Actual subsidy for 2009-10 was $79,782 and estimated subsidy for 2010-11 $479,875, not including depreciation, according to figures in the city’s 2011-12 operating budget. The latter subsidy might be lower due to higher-than-projected 2010-11 revenues.
Loans to Black Gold from city funds since 2000 total almost $4.8 million, noted a June report by Finance Director Dave Christian. Loan interest through 2006-07 totaling $1.1 million was paid by Black Gold, but interest was waived 2007-08 through 2010-11.
Waived interest was $350,000, based on an average yield the city could have earned in the Local Agency Investment Fund. Interest charges were resumed beginning 2011-12.
Here’s a look at Black Gold figures for the 2010-11 fiscal year and first three months of the 2011-12 fiscal year, as passed on to me by golf course General Manager Scott Heyn:
--Total revenue, in round numbers, for the 2010-11 fiscal year was $5.2 million, nine percent short of the budgeted $5.7 million but only two percent shy of the actual $5.3 million for 2009-10. (Heyn’s “actual” was $5,314,506, while the city listed $5,293,239.)
Heyn reported, “The first six months were extremely slow and put the club significantly behind budget and prior year.” But, he added, “The last seven months saw a significant improvement from the pace that the club was on at the beginning of the fiscal year.”
Indeed, the final three months showed revenue only four percent behind budget and just one percent behind the previous year. As Heyn noted, “The finish to the year allows the club to be extremely positive about the future….”
Rounds played in 2010-11 totaled 48,846, down 2.7 percent from the prior year’s 50,211, but the 14,671-round total for April, May and June 2011 was up 2.8 percent from 14,265.
--Total revenue for the first quarter, July, August and September of 2011, was $1.6 million, up 16.7 percent from the prior year. Total rounds played was14,274, up 10 percent from the previous year.
Heyn called the latest results “a tremendous success in every area of the club.” He added, “The main focus of this success can be seen in the food and beverage department, as well as in green fees, rounds played and range usage.”
Of course, Yorba Linda’s true-conservative adherents to limited government still decry city ownership of a golf course as an anathema to private enterprise--whether or not the club is profitable--but a turn-around could be good news for a cash-strapped city budget.
A report on Black Gold, including a wrap-up of the 2010-11 fiscal year, is scheduled for a Dec. 6 City Council meeting, according to City Manager Steve Rudometkin. Officials also should consider setting a timeline to end the city subsidy and pay back city loans.
Expenditures at the course for the 2011-12 fiscal year are estimated to be about $5.8 million, not including a $1 million depreciation charge, against projected revenue of about $5.2 million, resulting in a $635,900 subsidy from the city’s general fund.
Actual subsidy for 2009-10 was $79,782 and estimated subsidy for 2010-11 $479,875, not including depreciation, according to figures in the city’s 2011-12 operating budget. The latter subsidy might be lower due to higher-than-projected 2010-11 revenues.
Loans to Black Gold from city funds since 2000 total almost $4.8 million, noted a June report by Finance Director Dave Christian. Loan interest through 2006-07 totaling $1.1 million was paid by Black Gold, but interest was waived 2007-08 through 2010-11.
Waived interest was $350,000, based on an average yield the city could have earned in the Local Agency Investment Fund. Interest charges were resumed beginning 2011-12.
Here’s a look at Black Gold figures for the 2010-11 fiscal year and first three months of the 2011-12 fiscal year, as passed on to me by golf course General Manager Scott Heyn:
--Total revenue, in round numbers, for the 2010-11 fiscal year was $5.2 million, nine percent short of the budgeted $5.7 million but only two percent shy of the actual $5.3 million for 2009-10. (Heyn’s “actual” was $5,314,506, while the city listed $5,293,239.)
Heyn reported, “The first six months were extremely slow and put the club significantly behind budget and prior year.” But, he added, “The last seven months saw a significant improvement from the pace that the club was on at the beginning of the fiscal year.”
Indeed, the final three months showed revenue only four percent behind budget and just one percent behind the previous year. As Heyn noted, “The finish to the year allows the club to be extremely positive about the future….”
Rounds played in 2010-11 totaled 48,846, down 2.7 percent from the prior year’s 50,211, but the 14,671-round total for April, May and June 2011 was up 2.8 percent from 14,265.
--Total revenue for the first quarter, July, August and September of 2011, was $1.6 million, up 16.7 percent from the prior year. Total rounds played was14,274, up 10 percent from the previous year.
Heyn called the latest results “a tremendous success in every area of the club.” He added, “The main focus of this success can be seen in the food and beverage department, as well as in green fees, rounds played and range usage.”
posted by Jim Drummond at 12:00 PM
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