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Friday, December 16, 2016

City-owned Black Gold Golf Club: Revenues down, but expenses decline more in fiscal year-end report

An upbeat annual report on the city-owned Black Gold Golf Club, compiled by Yorba Linda's Parks and Recreation Director Mike Kudron and reviewed by City Council members at a recent meeting, labeled the club's most recently completed fiscal year “very successful.”

While club revenues fell short of projections made for the beginning of the 2015-16 fiscal year by $284,769 and actual income from the prior year by $198,281, expenses also declined – by $540,825 from budget estimates and $247,610 from the past year.

So the club's net income before capital expenditures was $815,197 from revenue close to $5.7 million. After investing $106,880 in improvements – closed-circuit TV security system, parking lot sealing, a new modular dance floor and other items – net income was $708,317.

Green fees brought in a bit more than $2.7 million, nearly $70,000 more than last year and just $5,550 behind projections. A total 55,544 rounds were played, 58 fewer than last year. Tournament rounds totaled 9,158, about 17.2 percent of paid rounds.

Income from the golf shop, food and beverage sales and facility use were down from beginning-of-the-year projections and prior year results, ranging from 3 to 18 percent. Revenue from the catering operation totaled $184,184, up $50,297 from the past year.

One reason for the course's “excellent playing condition,” Kudron stated, is the seven-year, 112-acre transition from rye grass to kikuyugrass, with fairways up to 97 percent completed. Wall-to-wall coverage, including roughs and turf slopes, should be finished within two years.

The warm season kikuyugrass' drought-tolerant nature enabled the elimination of daytime watering of established areas without jeopardizing turf health,” Kudron noted.

Other highlights from Kudron's report:

--Exposure for the next generation of golf enthusiasts is aided by acting as the host facility for the men's and women's golf teams at Cal-State Fullerton and Yorba Linda, Esperanza and El Dorado high schools and hosting parks and recreation classes and many junior-level events.

--Food and beverage “continues to be a strong profit center,” Kudron noted. Taco Tuesdays averaged more than 50 guests weekly during summer and early fall. Also, a Fall Wine Faire, holiday buffets, Breakfast with Santa and Sunday brunch “all draw families from Yorba Linda.”

--In addition to the 55,544 individuals playing golf rounds, the club drew 14,823 to meetings and banquets; 14,354 to restaurant a la carte dining; 12,738 to the practice facility; 9,373 to events and tournaments; and 8,700 to weddings.

--The club has an increased presence on social media: a Facebook page with more than 12,000 “likes,” higher than any other stand-alone Southern California golf club; a 26 percent increase to 31,833 for website views; and a 43 percent jump in Instagram followers. A return of 2,084 customer surveys showed an average 9.3 out of 10 service rating.