Consultants: Olympia Hills covers operations but needs $3.2M–$4.2M in capital work; council seeks phased plan

The Universal City City Council on an evening in June heard a strategic review of Olympia Hills Golf Course from the National Golf Foundation (NGF), which concluded the facility generally performs above average for municipal golf but will require $3.2 million to $4.2 million in capital improvements to address aging infrastructure and some original construction shortcuts.

In a presentation that included course condition observations, market analysis and a five-year financial projection, Richard Singer, director of consulting for the National Golf Foundation, told the council the course produced about $2.6 million in revenue in 2024 (a year in which greens renovations and discounting reduced revenue) and $2.9 million in 2023. Singer said the site generated an on-site operational profit in the range of $143,000 to $298,000 from 202123, but there are substantial "below the line" costsdepreciation, administrative allocations and a stormwater management line itemthat exceed what golf revenue alone can cover.

Singer said the capital items NGF identified include bunker renovations, irrigation expansion, cart path repairs, restroom and parking repairs and kitchen improvements; the full package was estimated "anywhere between 3 and a third to maybe a little more than $4,000,000". He recommended categorizing improvements as "need to have," "nice to have" and longer-term revenue-generating ideas (driving-range upgrades, patio coverings, event conveniences) and noted inflation makes cost estimates volatile.

Why this matters: Olympia Hills is a revenue-producing city-owned facility and a venue tax was created to support it. The consultant said the venue tax currently funds outside items the course does not generate from operations, but a remainder of that tax still exists and the council must decide how much to continue directing toward the golf property.

Key findings and context

Richard Singer told the council Olympia Hills has strong fundamentals: a good-quality course and clubhouse, practice amenities and an event center that complement each other. NGF documented that the average U.S. public golf course generates about $1.5 million in revenue annually and observed Olympia Hills was well above that benchmark in recent years. Singer said the courseas currently configuredis narrow and relatively difficult for typical players; his team recommended softening the course with forward tees, reduced bunker square footage and some hole widening where feasible to improve playability and maintenance costs.

Singer summarized that while day-to-day on-site operations appear covered by golf revenue, the property requires external support for depredation, administrative allocations and stormwater. "The outside support mechanism you have in place now is the venue tax," Singer said, noting there is still a remainder in that tax after the course's external costs are paid.

Council discussion, directions and concerns

Council members asked detailed questions about which capital items were essential to reach NGF's projected revenue improvements, and several sought options that would reduce dependence on general taxpayer subsidies. Council member Bonner said she had expected recommendations on ways to make the course "more self-sufficient without using taxpayer dollars," and asked whether 33 percent of municipal courses that cover both on-site and indirect costs are an industry norm.

Singer responded that municipal courses often are treated as community amenities and many jurisdictions accept some level of taxpayer support; he recommended considering private investment only if a private partner would invest a large capital sum (Singer suggested roughly the $4 million figure) in exchange for a long-term lease or similar arrangement. He also outlined operating options such as a food-and-beverage contract or a professional management agreement but cautioned those do not necessarily shift capital responsibility and may carry annual management fees.

Council member Vaughn recommended operational and marketing changes the city could pursue first: require full fees for city-sponsored or nonprofit events using the banquet space, expand quick-service food-and-beverage offerings for golfers, clarify kitchen hours, and request quarterly performance reporting (rounds, average revenue per round, food-and-beverage sales) so council can track progress against NGF's targets.

Singer suggested a five-year projection that included potential revenue gains of roughly $700,000 over five years if recommended improvements and marketing investments were made, but warned that expense inflation could blunt those gains. He also suggested that the city consider a targeted economic impact study to quantify spending that nonresidents bring to Universal City.

Outcome and next steps

After discussion, a council member asked for a consensus to approve NGF's report "as written" for the official record; the council signaled consensus (no formal roll-call or ordinance required). Council members who spoke asked staff to return with options to phase capital work, to tighten marketing and food-service operations, and to provide quarterly metrics tied to NGF's recommendations. No formal binding action (bond authorization or contract award) was taken at the meeting.

Clarifying details

- NGF capital estimate range: roughly $3,333,000 to more than $4,000,000 (Singer cautioned rapid cost inflation). - Revenue: Olympia Hills reported about $2.9 million in 2023 and $2.6 million in 2024 (2024 was impacted by greens renovation and discounting). - On-site operational profit (202123): reported between $143,000 and $298,000 per year. - Staffing: NGF noted a mix of full- and part-time staff (example mentioned: 12 full time, 32 part time as an illustrative staffing mix). - Funding: NGF identified the city's venue tax as the primary mechanism that covers outside/capital allocations (depreciation, stormwater, administrative services); the consultant said a remainder exists after those charges are covered and council can reallocate that remainder.

Speakers

- Richard Singer — Director of Consulting, National Golf Foundation (business). - Council member Vaughn — Council member (government). - Council member Bonner — Council member (government). - Randy (presenter) — Public works presenter (government) (questions touched public works intersections). - Various council members asked questions and discussed policy and budget implications; quotes and attributions in this article come from the speakers listed above.

Topics and tags

Topics: municipal golf, parks and recreation, venue tax, capital budget. Searchable tags: Olympia Hills, National Golf Foundation, venue tax, municipal golf, capital plan, Universal City.

Provenance

- topicintro: {"block_id":"s=555.155","local_start":0,"local_end":434,"evidence_excerpt":"Thank you, Mayor. As you recall during our budget season, the council had requested that the staff go out and do an RFP in order to get operational plan and capital assessment for the Olympic Hills Golf Course... Richard Singer is here this evening."} - topfinish: {"block_id":"s=4145.135","local_start":0,"local_end":207,"evidence_excerpt":"Even the negatives were very informative and well presented. I would like to have a consensus of the council to approve this report as written, just for a matter of record."}