Bennett Valley Golf Course Overview
LONG TERM FINANCIAL POLICY AND
AUDIT SUBCOMMIT TEE
MARCH 21, 2024
JEN SANTOS
DEPUT Y DIRECTOR - PARKS
BVGC
Financial
Overview
2 Debt Service Overview
General Fund Assistance Overview
FY 2022-23 BVGC Year-End
FY 2023-24 BVGC Mid-Year
FY 2024-25 BVGC Proposed Budget
Rate increase / Capital Projects
3 Bennett Valley Golf Course Enterprise
4 Debt Service Overview
Golf Course Bonds FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Thereafter TOTAL Principal 275,000.00 285,000.00 300,000.00 315,000.00 1,425,000.00 2,600,000.00 Interest 117,643.25 104,461.38 90,679.38 76,053.50 141,010.00 529,847.50 Total Debt Service 392,643.25 389,461.38 390,679.38 391,053.50 1,566,010.00 3,129,847.50 Interfund Loan FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Thereafter TOTAL Principal 43,315.12 44,181.43 45,065.05 45,966.35 193,244.41 371,772.36 Interest 19,929.33 19,063.02 18,179.40 17,278.10 59,733.39 134,183.24 Total Debt 63,244.45 63,244.45 63,244.45 63,244.45 252,977.80 505,955.60 Combined Debt FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Thereafter TOTAL Total Debt $455,887.70 $452,705.83 $453,923.83 $454,297.95 $1,818,987.80 $3,635,803.10 5 General Fund Assistance
10 Year Overview
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Transfer 469,165.80$ 471,801.00$ -$ -$ -$ -$ -$ -$ 351,225.00$ -$ 2,229,070.00$ 3,521,261.80$ Ten Year Total
6 FY 2022-23 Touchstone Year-End
Bennett Valley
OPERATING PERIOD Actual Budget
7/2022-6/2023 7/2022-6/2023 22-23 vs Plan
REVENUE 3,391,102 3,490,263 -2.8%
Cost Of Sales 403,842 351,748 14.8%
GROSS PROFIT 2,987,260 3,138,515 -4.8%
Payroll 1,838,737 1,820,211 1.0%
Other Expenses 956,129 827,047 15.6%
TOTAL OPERATING EXPENSES 2,794,866 2,647,258 5.6%
EBITDA 192,394 491,257 -60.8%
KEY INDICATORS
Total Rounds 55,731 68,564 -18.7%
Avg. Total Green Fee Including Dues 25.81 26.14 -1.3%
Avg. Total Cart Fee 6.67 6.21 7.4%
Average Total GF Inc. Dues & Cart Fee 32.48 32.35 0.4%
Memberships - Year End Units 138 100 38.0%
Total Dues 138,980 $ 151,029 -8.0%
7 FY 2023-24 Touchstone Mid-Year
Bennett Valley
OPERATING PERIOD July - Dec Jul- Dec Jul - Dec
2023 Plan Prior 23 vs Plan 23 vs 22
REVENUE 2,347,180 2,326,320 1,447,009 0.9% 62.2%
Cost Of Sales 339,688 293,040 128,442 15.9% 164.5%
GROSS PROFIT 2,007,492 2,033,280 1,318,567 -1.3% 52.2%
Payroll 1,153,013 1,146,972 861,915 0.5% 33.8%
Other Expenses 569,285 481,774 494,597 18.2% 15.1%
TOTAL OPERATING EXPENSES 1,722,298 1,628,746 1,356,512 5.7% 27.0% EBITDA 285,194 404,534 (37,945) 170.5% 651.6%
KEY INDICATORS
Total Rounds 31,245 33,000 30,722 -5.3% 1.7%
Avg. Total Green Fee Including Dues $ 28.19 $ 28.81 $ 23.26 -2.2% 21.2% Avg. Total Cart Fee $ 7.32 $ 7.34 $ 7.01 -0.3% 4.4% Average Total GF Inc. Dues & Cart Fee $ 35.51 $ 36.15 $ 30.27 -1.8% 17.3% Memberships - Year End Units 141 122 128 15.6% 10.2%
Total Dues $ 91,866 $ 87,069 $ 66,434 5.5% 38.3% 8 FY 2024-25 Touchstone Proposed Budget
BUDGET SUMMARY Bennett Valley
OPERATING PERIOD OPERATING PERIOD 2024-2025 2023 2022-2023 Budget LTM Actual 24 v LTM 24 v 23
REVENUE REVENUE 4,799,230 4,296,125 3,391,102 11.7% 41.5% Cost Of Sales Cost Of Sales 644,890 615,089 403,842 4.8% 59.7% GROSS PROFIT GROSS PROFIT 4,154,340 3,681,037 2,987,259 12.9% 39.1% Payroll Payroll 2,432,935 2,134,332 1,838,737 14.0% 32.3% Other Expenses Other Expenses 1,163,415 1,043,081 961,111 11.5% 21.0%
TOTAL OPERATING EXPENSES TOTAL OPERATING
EXPENSES 3,596,350 3,177,413 2,799,848 13.2% 28.4%
EBITDA EBITDA 557,989 503,624 187,411 10.8% 197.7%
KEY INDICATORS KEY INDICATORS
Total Rounds Total Rounds 58,242 56,293 55,731 3.5% 4.5% Avg. Total Green Fee Including Dues Avg. Total Green
Fee Including Dues $ 31.50 $ 28.50 $ 25.81 10.5% 22.0% Avg. Total Cart Fee Avg. Total Cart Fee $ 7.11 $ 6.84 $ 6.67 4.0% 6.6% Average Total GF Inc. Dues & Cart Fee
Average Total GF
Inc. Dues & Cart
Fee
$ 38.61 $ 35.34 $ 32.48 9.2% 18.9% Memberships - Year End Units Memberships - Year
End Units 176 138 138 27.5% 27.5%
Total Dues Total Dues $ 270,892 $ 164,412 $ 138,980 64.8% 94.9% 9 Rate Increase Overview
Increase in fees are necessary:
❑ Increases in operating costs (minimum wages, utilities, and cost of goods) ❑ Need the golf course to be profitable to fund debt services, deferred maintenance, operating costs
❑ Improve the financial performance of the golf course to prevent use of General Fund ❑ More improvements are needed at the golf course (equipment, course drainage, tee leveling, etc.) due to significant deferred maintenance ❑ Plan to achieve a consistent rate model
10 Rate Increase Overview
Only three minor rate increases between 2011 – 2022
Council approved recent rate increase March 2023 (Average increase of 10% implemented, which was well below market rate.)
With the previous inconsistent rates increases throughout the years, larger increases are now necessary
Proposing a consistent 3-year rate increase:
◦ Year 1 (FY 24/25) increase closer to the market rates while maintaining the best value golf course ◦ Years 2 (FY 25/26) & 3 (FY 26/27) moderate increases
◦ BVGC will remain best value while targeting a sustainable enterprise fund Proposing Resident and Non-Resident rate structure
oResident and Non-Resident Study from July 2022 - December 2023: Findings 68% is Santa Rosa Resident Play
oNon-Resident pricing approximately 10-15% higher than residents of Santa Rosa 11 Proposed Rate Increases & comparable rates
CMA
Bennett Valley
GC
Bennett Valley
GC
Windsor Golf
Club Foxtail- North Valley of The
Moon
Rooster Run
Golf Course
Current 2024 2024 2024 - Carts
Mandatory +$19 2024 2024
Weekday Rates BVGC BVGC Proposed Windsor Foxtail VOTM Rooster Average % Under Competition Regular Resident $37 $41 $49 $40 $42 $49 $45 10%
Regular - Non Res $37 $47 $54 $54 $42 $54 $51 9%
Senior (60+) $30 $33 $44 $44 $31 $45 $41 23%
Senior Non Resident $30 $38 $44 $40 $31 $45 $40 5%
Twilight $28 $31 $38 $40 $31 $35 $36 16%
Senior Twilight $23 $26 $35 $35 $24 $35 $32 26%
Super Twilight $17 $19 $28 $29 $22 $28 $27 42%
Senior Super Twilight $17 $19 $28 $28 $22 $28 $27 40%
Junior $14 $14 $15 $20 $15 $15 $16 16%
Competitors
12 Capital Needs Summary
In 2021 National Golf Foundation conducted a Capital Investment project list; Projects Description of Work Estimated Cost
Irrigation Complete system and pump station replacement. $3,250,000 Drainage Subsurface conveyance pipe, catch basins. $1,103,000 Turf Reduction (by 30%) Convert excessive maintained turf to native. $243,750 Lake Construction Liner Installation. $88,500
Bioswale Creation Convert low areas to bioswales for conveyance. $174,240 Grading Lake Excavation, Earthwork, Fine Shaping $297,500 Trees Remove 50-100 dead trees/stumps. $50,000
Maintenance Facility In-house clean up only. $50,000
Cart Paths & Bridges Basic path repairs + Review structural integrity of bridges + repair. $750,000 New Turf Requirements For tees, bunkers, drainage and Irrigation Disturbance only. $237,250 Professional Services Engineering, Golf Course Architecture, Agronomy $305,000 Total All items listed above. $6,549,240
13 Capital Needs Summary
In 2021 National Golf Foundation Optional Capital Investments Projects Description of Work Estimated Cost
Greens Renovate greens profiles and drainage. $638,000
Tees Renovate tees, enlarge and add forward tees. $271,000 Bunkers Renovate bunkers with minimal additions. $370,000 Range Netting, poles, shaping, grassing. $1,326,500
Maintenance Facility New facility $1,200,000
New Turf Requirements New turfgrass for golf course. $2,831,400 Professional Services Engineering, golf course architecture, agronomy $410,000 Total All items listed above. $7,046,900
Notes: Probable Construction Cost prepared by the Golf Course Architect shall represent the Golf Course Architect’s best judgment as a design professional of the probable construction cost for the golf course work. It is recognized, however, that neither the Golf Course Architect nor the Owner has control over the cost of labor, materials, equipment or course accessories, over any contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Golf Course Architect does not warrant or represent that bids or negotiated prices will not vary from any project budget which may have been proposed, established or approved by the Owner or from any Statement of Probable Construction Cost or other cost estimate or evaluation prepared by the Golf Course Architect.
14 Capital and Equipment Needs Summary
Projects completed or in progress and equipment purchased since June 2022:
Completed Y/N Budget Spend Balance
o POS System – EZLinks POS Yes – 7/2022 $20,000 $22,135 -$2,135 o Erange Software System – Driving Range Yes – 9/2022 $12,000 $7,832 $4,168 o Walkin Refrigerator Floor Yes – 9/2022 $15,000 $13,844 $1,156 o Kitchen & Building Repairs (needed to open restaurant) Yes – 10/2022 $20,000 $32,836 -$12,836 o 175 Folding Chairs Yes – 11/2022 $20,000 $15,706 $4,294 o Glass & Dishware (ongoing) No $16,500 $3,990 $12,510 o Tree Removal – Removed 11 dead trees and 25 stumps (ongoing) No $90,000 $32,000 $58,000 o Event Chairs for banquets Yes – 03/2023 $15,500 $21,446 -$5,946 o 2012 Beverage Cart Purchased Yes – 6/2023 $20,000 $11,752 $8,248 o HVAC in Clubhouse – Fix air conditioner Yes – 7/23 $0 $16,736 -$16,736 o Lely Spreader (seed spraying machine) Yes – 8/2023 $0 $9,144 -$9,144 o Irrigation Conceptual Design – Water Supply Yes – 8/2023 $50,000 $36,500 $13,500 o New Carpet – Restaurant, Banquet Center, Golf Shop Yes – 9/23 $90,000 $61,775 $28,225 o Tee Leveling – Holes #2, 3, 6, 7, 11, 13, 15, and 16 Yes – 10/23 $115,000 $96,747 $18,253 o Pergola for Banquet area Yes – 12/23 $70,000 $70,066 -$66 o New Sound System for Banquet Center No – 5/15/2024 $8,000 $0 $8,000 15 Capital and Equipment Needs Summary
Touchtone Projects completed or in progress and equipment purchased since June 2022:
Completed Y/N Budget Spend Balance
o Driving Range Utility Cart Yes – 10/2023 $17,000 $16,459 $541 o Turbine Blower Yes – 10/2022 $10,000 $11,619 -$1,619 o Fairway Aerator (Not yet ordered) No – 4/2024 $55,000 $25,000 $30,000 o Furniture in Restaurant Yes – 4/2024 $22,000 $23,817 -$1,817 o Greens Aerator Yes – 10/2023 $32,000 $38,106 -$6,106 o 2 ClubCar Utility Vehicles Yes – 4/2024 $38,000 $31,843 $6,157 o Irrigation Pump Repairs (waiting for drier conditions) No – 5/15/2024 $40,000 $40,000 $0 Totals $394,000 $341,975 $52,025
Other projects completed or in progress and equipment purchased:
o In August 2023, Council approved $2 million from the General Fund for new water supply and storage system for the existing irrigation system – in design – expected to be in construction Fall 2024 or early 2025 pending future weather conditions o New Golf Cart Lease provided for $9,623/month. The 72 new ClubCar golf carts were received in November 2023. o Two new greens mowers were received in March 2024.
16 Capital and Equipment Proposed Budget for FY 24/25
o New POS System to better service our guests (Lightspeed) $30,000 o Toro or John Deere Utility Carts – to replace aging carts $65,000 o Fairway Aerator $27,000
o New Office in Golf Shop $25,000
o Par 3 Course Set Up – create a course that people can play in the winter $20,000 o Turbine Blower – The 2nd Blower on fleet $13,000
o Patio Chairs and Tables $10,000
o 30 Bar stool chairs $4,000
o Driving Range Mats $11,000
o Tree and Stump Removal $40,000
o Bridge Repair – Replace walking/traction thread on bridge(s) $5,000 o Cart Path Repairs – Replace slabs of concrete that have been uprooted $15,000 Total CapEx for 2024/2025 $265,000
17 Recommendation
It is recommended by the Recreation and Parks
Department that the Long-Term Financial Policy Audit
Subcommittee provide feedback regarding the Bennett
Valley Golf Course Overview and recommend Council
approval of the proposed golf fees rate increase for FY 2024/25.
18 Questions, Feedback, Next steps