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Financial review: Sun City West golf division reports mixed results; January helped narrow shortfall
Summary
Mr. Swan told the committee the golf operation was about $119,000–$120,000 behind on a roughly $4.5 million budget through the first six months, with January improving results; staff highlighted card revenue gains and cost pressures from chemicals and fertilizers.
Mr. Swan presented the golf division’s year-to-date financial review and answered committee questions about revenue drivers and expenses. Through the first six months of the fiscal year the operation was presented as approximately $119,000–$120,000 behind a roughly $4.5 million annual budget; Mr. Swan said January produced a “big chunk” of recovery and that the group remains cautiously optimistic.
Mr. Swan gave details by revenue line: unlimited-card revenue was reported up about 5% (roughly $19,000), while changes to non-member greens fees contributed about $26,000 in additional non-member revenue so far. Rounds were reported roughly 206 behind the budgeted number for the period but favorable compared with the prior year in some metrics, Mr. Swan said. He noted the operating budget and the golf-specific component will be presented to the full budget & finance committee at the next meeting; the committee will also present the budget in March.
On the expense side staff flagged chemicals and fertilizer as the clearest near-term cost pressure; landscape maintenance and some wages/benefits lines showed favorable variances (one line item was described as $295,000 favorable). Mr. Swan and staff emphasized that weather had a material effect on rounds in November–December and that January’s better weather contributed to improved performance.
Committee members asked for course-level breakdowns of irrigation and repair spending; staff said those course-level cost allocations are available and that a pump-replacement program (variable-speed pumps at Echo Mesa and Grand View) is being tracked and is expected to yield electricity savings (staff estimated roughly 20% in electricity savings but characterized that as an estimate). Bids for the Stardust renovation were expected to be received on Feb. 18, staff said.
No formal vote or action was recorded on the financial presentation; staff will return with the full operating and golf budgets during the budget process.
