Golf revenues lag budget but expenses lower; committee previews rate analysis for budget
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Summary
Staff reported year-to-date revenue $150,000 below budget on $4.5 million and approximately 3,300 rounds below budget through six months; expenses were $484,000 favorable to budget. The committee was shown comparable market rates and told a budget recommendation will be presented in March.
Sun City West staff presented midyear financial results for golf operations and previewed a rate-comparison analysis the committee will use when recommending rates for the upcoming budget.
“Year to date, we are a hundred and 50 thousand unfavorable to budget on 4 and a half million in revenue,” Director Graham reported, adding that rounds for the year were about 3,300 below budget through the first six months. He said the organization was approximately $47,000 ahead of prior year on revenue but roughly 4,000 rounds below prior year, with the shortfall driven mainly by member rounds. Director Graham also reported that expenses were about $484,000 favorable to budget, largely because of timing and open landscape-maintenance positions; overall net was about $334,000 favorable to budget year to date.
Staff emphasized that golf operates with negative cash flow in the first half of the fiscal year due to investments in overseeding and course preparation for the busy season. Committee member Tim Hurley asked that staff overlay expense trends atop revenue charts to show the out-of-sync timing (July budget year with fall/winter peak play). Director Graham agreed to present that combined visual at a future meeting.
Cliff (staff) and Pat O'Hara presented an annual competitive-rate analysis comparing resident, member-guest and public rates at nearby peer courses (examples cited included Coyote Lakes, Verrado, Pebble Creek, Grand and Sun City). Pat said Sun City West’s peak-season resident rate is $46 (cart not included for residents), and the member-guest rate with a cart is $90; staff noted wide variability among peer communities and that many use dynamic pricing. Pat said annual-card average revenue per round for unlimited cardholders is roughly $22 per round (average rounds per unlimited cardholder roughly 180–350 by example), while kachina and coyote card rounds average about $30–$31 per round when greens fees are factored.
Staff said they will return in March with an operating budget and a recommended rate plan (member, nonmember, cart fees and other line items) informed by historical rounds, competitive pricing and projected operating costs. No rate change was adopted at this meeting.
