Candidates favor Black Gold subsidy
Scratch the city’s yearly subsidy to balance the books at the Black Gold Golf Club as a contentious issue in this year’s City Council election, since all seven candidates for the three open positions agree the annual bailout is acceptable in today’s economy.
The two incumbents and five challengers concur that the city-owned facility is a major component in the city’s recreational setting and will be an important contributor to the city’s future financial bottom line, especially after the construction bonds are retired.
Support for Black Gold and the taxpayer subsidy--conveyed at the recent Chamber of Commerce-sponsored candidates’ forum--is significant, since each contender is a self-described fiscal conservative championing limited government.
This election cycle seems to have quieted some of the questions raised in the 1990s about the role of city government in building and operating an upscale golf facility, as well as a few broached in recent years about the city subsidy needed to meet expenses.
For the 2012-13 fiscal year that began July 1, the city estimated Black Gold revenue at $5.8 million and expenses at $7 million (including an $850,000 entry for depreciation), leaving a $1.2 million gap ($350,000 not counting depreciation).
Black Gold also borrowed nearly $4.8 million from the city beginning in 2000 and paid interest through the 2006-07 fiscal year totaling $1.1 million. Interest was suspended for 2007-08 through 2010-11 (totaling some $350,000) but was resumed beginning 2011-12.
The good news from Black Gold is that total revenue and the number of rounds played in the 2011-12 fiscal year were up appreciably over the prior year and from projections made at the beginning of the year.
The 2011-12 fiscal year ended June 30, but the fourth quarter report for April through June wasn’t delivered to council members (and this columnist) until earlier this month.
Total revenue for fiscal year 2011-12 was a bit below $5.87 million, compared to a bit above $5.20 million in 2010-11 and the nearly $5.25 million estimate for 2011-12. The rounds were 56,352 in 2011-12, up from 48,846 in 2010-11 and the 48,890 forecast for 2011-12. That’s close to 13 percent more revenue and above 15 percent more rounds.
In a report to Parks and Recreation Director Bill Calkins, Black Gold General Manager Scott Heyn called the fourth quarter results “a fitting conclusion to a fantastic year” and the entire year “nothing other than a fantastic success.”
Catering income for the fourth quarter jumped 22 percent over the prior year, with the year “a club record for the catering department.” But tournament revenue dropped 21 percent “due to the increase in dates booked by the catering team,” Heyn said. “With one room for all events it sometimes can be a struggle for both sides to have huge successes.”
Daily golf fees are the largest revenue stream, showing “a huge recovery over the last 12 months,” Heyn stated. “This is the strongest indicator that the work being done on the course has an impact, as well as the fact that the economy is more stable than the previous year.”
The two incumbents and five challengers concur that the city-owned facility is a major component in the city’s recreational setting and will be an important contributor to the city’s future financial bottom line, especially after the construction bonds are retired.
Support for Black Gold and the taxpayer subsidy--conveyed at the recent Chamber of Commerce-sponsored candidates’ forum--is significant, since each contender is a self-described fiscal conservative championing limited government.
This election cycle seems to have quieted some of the questions raised in the 1990s about the role of city government in building and operating an upscale golf facility, as well as a few broached in recent years about the city subsidy needed to meet expenses.
For the 2012-13 fiscal year that began July 1, the city estimated Black Gold revenue at $5.8 million and expenses at $7 million (including an $850,000 entry for depreciation), leaving a $1.2 million gap ($350,000 not counting depreciation).
Black Gold also borrowed nearly $4.8 million from the city beginning in 2000 and paid interest through the 2006-07 fiscal year totaling $1.1 million. Interest was suspended for 2007-08 through 2010-11 (totaling some $350,000) but was resumed beginning 2011-12.
The good news from Black Gold is that total revenue and the number of rounds played in the 2011-12 fiscal year were up appreciably over the prior year and from projections made at the beginning of the year.
The 2011-12 fiscal year ended June 30, but the fourth quarter report for April through June wasn’t delivered to council members (and this columnist) until earlier this month.
Total revenue for fiscal year 2011-12 was a bit below $5.87 million, compared to a bit above $5.20 million in 2010-11 and the nearly $5.25 million estimate for 2011-12. The rounds were 56,352 in 2011-12, up from 48,846 in 2010-11 and the 48,890 forecast for 2011-12. That’s close to 13 percent more revenue and above 15 percent more rounds.
In a report to Parks and Recreation Director Bill Calkins, Black Gold General Manager Scott Heyn called the fourth quarter results “a fitting conclusion to a fantastic year” and the entire year “nothing other than a fantastic success.”
Catering income for the fourth quarter jumped 22 percent over the prior year, with the year “a club record for the catering department.” But tournament revenue dropped 21 percent “due to the increase in dates booked by the catering team,” Heyn said. “With one room for all events it sometimes can be a struggle for both sides to have huge successes.”
Daily golf fees are the largest revenue stream, showing “a huge recovery over the last 12 months,” Heyn stated. “This is the strongest indicator that the work being done on the course has an impact, as well as the fact that the economy is more stable than the previous year.”
posted by Jim Drummond at 12:00 PM
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