CourseCo and city staff report improved finances, capital plans for municipal golf course

Tina Nelson, the Parks and Recreation business manager, and CourseCo Chief Operating Officer Tom Bugby briefed the Parks and Recreation Commission on Sept. 24 on the Santa Barbara Municipal Golf Course’s operations, finances and capital plan.

Nelson summarized the course’s history and the 2016 transition to CourseCo management. She said the golf enterprise operates as a self-sustaining fund: revenues generated by golf pay for staffing, maintenance, capital improvements and reserves, and the course does not receive general-fund subsidies for operations. Nelson provided fiscal-year 2026 figures the staff prepared: total operating revenue projected at about $5,200,000 (comprised of golf fees and charges as the largest share at approximately $4,800,000, interest income and restaurant concession receipts), $1,670,000 in capital outlays for the year and a net operating deficit in the 2026 budget of about $474,000 that staff said will be covered by a reserve surplus.

Nelson said the city has rebuilt reserves, paid off prior debt at the course, and increased investment in deferred capital work. She described major capital priorities that include maintenance-road work, tee-box renovations, green and bunker reconstruction, driving-range redesign and equipment replacement. Nelson referred to a players-improvement fund comprised of one dollar from each full-priced paid round; those funds are earmarked for course improvements and prioritized based on golfer surveys and Golf Advisory Committee recommendations.

Tom Bugby described CourseCo’s operational approach and national portfolio. He said CourseCo and the city aim to balance affordability and access with long-term financial performance, community programming and environmental stewardship. Bugby noted industry trends that have driven participation since the pandemic — including increased junior and women’s participation — and said Santa Barbara’s rounds recovered strongly and have been among CourseCo’s better-performing municipal properties. He highlighted community programs (movie night and nontraditional events) used to broaden participation and support junior programming.

Commissioners asked about protections for the course in a potential future demand downturn. Bugby and Nelson pointed to reserves, the increased capital investment now under way, and CourseCo’s contract structure (including direct reimbursement of operating costs and an incentive fee paid when revenues exceed thresholds). Nelson said CourseCo’s base accounting and management fee is approximately $130,000 annually and the contract also allows for an incentive fee in stronger years; the transcript referenced past incentive awards up to about $200,000 in some years.

Commissioners and staff also discussed water costs (which have risen and remain a significant operating expense), the closed driving range and plans for a range master plan and redesign, and environmental stewardship practices at the course (including Audubon certification and youth First Green educational activities).

Nelson and Bugby said the course produces revenue that is reinvested in operations and capital, and staff urged continued oversight and staged capital work funded from reserves and the course’s operating surplus.