December 12, 2016 U.S. Course Openings & Closures - 2015 - - PowerPoint PPT Presentation

December 12, 2016

U.S. Course Openings & Closures - 2015

• National Golf Foundation (NGF)

recorded 0 Illinois golf course openings and 7.5 public course closures in 2015

• Nationwide, 17 courses
• pened while 148.5 closed
• Closings outpaced openings for

the 10th consecutive year

National Golfer Demographics

Source: NGF and U.S. Census

Category Percentage Golfers (% of U.S. Population) 9.6% Male 80.7% Female 19.3% Attended/Graduated College 78% Homeowners 68%

Strong correlation between income levels and golf participation 58% of golfers nationwide have a HH income of $75,000+ National average household income: $95,000 Decatur average household income: $55,320

Income

2010 – 2014 Quickfacts.census.gov, EDC website, NGF

Decatur Park District

Challenge of Fund Distribution

DISC 165,407 visits Zoo 98,000 visits Mini Golf 29,145 rounds Golf 55,110 rounds Junior Golf 60 players Lacrosse 85 players Youth Baseball 825 players MidState Soccer 1,100 players

35% of Park District Operating Budget is tax dollars.

100 200 300 400 500 600 700 800 900 1000

'82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 16 Series1 574 528 500 454. 441. 436. 441. 449. 459. 470. 484. 509. 533. 546. 562. 591. 623. 633. 640. 692. 723. 807. 792. 826. 855. 885. 898. 911. 907. 902. 855. 828. 811. 814. 830.

MILLIONS YEAR

DECATUR PARK DISTRICT EQUALIZED ASSESSED VALUATION (EAV)

Decatur Golf Challenges

Economic and demographic challenges to Decatur Park District golf operations:

• Population decline
• Slower rate of income growth
• Competition (# courses within 60 miles)

The financial backbone of the national golf market is the 25 – 44 age group, who play the most golf and generally pay full price and use a cart.

Decatur Golf Challenges

• Decatur population has dropped 20%
• The number of youth < age 19 has declined 35%
• DPS #61 enrollment declined from +20,000 to

9,000 currently. 73% of students are free lunch eligible.

Since 1980…

By 2017, 1/3 of Decatur’s population will be 65+

Decatur Population & Golf Round Trends

50,000 100,000 150,000 200,000 250,000 66000 68000 70000 72000 74000 76000 78000 80000 82000 84000 86000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Population FISCAL YEAR

Population Golf Rounds

Golf Rounds Comparison

May – November FY11/12 – 16/17 FY 2011/2012 65,599 FY 2012/2013 68,870 FY 2013/2014 66,764 FY 2014/2015 59,016 FY 2015/2016 62,523 FY 2016/2017 (current year) 55,110 Down 7,413 rounds

What We’ve Done

REDUCED

Number of holes Staff/personnel costs Chemical use Pro Shop inventory Fees at Scovill Starter Rangers

OFFERED

Short Course at Scovill Hack golf (15-inch holes) Fling golf FootGolf Nine after 5 Youth Course at Hickory Point Reduced fee for juniors Student outreach

2016 Unfilled Tee Times

March 1 – end of season

Scovill Hickory Red Tail All Courses Total Tee Times Available 62,648 68,224 70,264 201,136 Filled # of Tee Slots 23,060 33,720 36,891 93,671 Filled % 37% 49% 53% 47% Unfilled # of Tee Slots 39,588 34,504 33,373 107,465 Unfilled % 63% 51% 47% 53%

(10/16) (11/21) (11/21)

Miscellaneous Expenses Affect Our Bottom Line

Item Cost Missing Total Baskets $7.00/basket 25 $175.00 Cups, Lids, Straws $2,500.00/year Range Balls 55 cents/ball 4,000 $2,200.00/year $4,875.00

Golf Revenue vs. Expenses: Total Subsidy

Fiscal Year Golf Revenue Golf Expense Net Operating Loss/Gain Capital Expenditures Total Golf Subsidy FY'05-06 $3,169,947 $3,649,962 ($480,015) $584,251 $1,064,266 FY'06-07 $3,390,388 $3,520,646 ($130,258) $262,225 $392,483 FY'07-08 $3,410,510 $3,498,595 ($88,085) $217,686 $305,771 FY'08-09 $2,985,091 $3,498,475 ($513,384) $1,620,247 $2,133,631 FY'09-10 $2,848,662 $2,949,037 ($100,375) $300,591 $400,966 FY'10-11 $2,565,540 $2,886,693 ($321,153) $314,607 $635,760 FY'11-12 $2,822,181 $2,930,942 ($108,761) $344,024 $452,785 FY'12-13 $2,611,944 $2,885,939 ($273,995) $336,073 $610,068 FY'13-14 $2,678,666 $2,868,036 ($189,370) $556,663 $746,033 FY'14-15 $2,483,660 $2,550,588 ($66,928) $346,541 $413,469 FY'15-16 $2,570,152 $2,526,016 $44,136 $315,122 $270,986 Average $2,866,976 $3,069,539 ($202,563) $472,548 $675,111

Capital Expenditures

• Cart Path Extensions
• Parking Lot Projects
• Golf Cart Replacements
• HVAC Improvements
• Equipment/Mowers/Vehicle Replacements
• Hickory Point Bunker Project/Irrigation System Update

ERA Golf Study

“The primary market in Decatur is

• ver-supplied by 1 – 2 public 18-hole courses.

The rounds and revenue resulting from the closure of one or more courses will increase rounds and revenue at the remaining courses.”

Decatur Park District Golf Analysis, Feb. 4, 2009 Economics Research Associates/AECOM

2013 Master Plan

“Despite the perception by some in the community that golf demand remains strong, the facts tell a different story. If the downward trends in golf demand and revenues continue, the Park District will have little choice but to further reduce the number of holes available to shift the available golf demand to achieve sustainable financial performance at fewer courses.” ~ 2013 Park District Master Plan