U.S. Course Openings & Closures
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1 December 12, 2016
2 U.S. Course Openings & Closures National Golf Foundation (NGF) recorded 0 Illinois golf course openings and 7.5 public course closures in 2015 Nationwide, 17 courses opened while closed Closings outpaced openings for the 10 th consecutive year
3 National Golfer Demographics Category Percentage Golfers (% of U.S. Population) 9.6% Male 80.7% Female 19.3% Attended/Graduated College 78% Homeowners 68% Source: NGF and U.S. Census
4 Income 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, Quickfacts.census.gov, EDC website, NGF
5 Decatur Park District Challenge of Fund Distribution DISC Zoo Mini Golf Golf Junior Golf Lacrosse Youth Baseball MidState Soccer 165,407 visits 98,000 visits 29,145 rounds 55,110 rounds 60 players 85 players 825 players 1,100 players
6 35% of Park District Operating Budget is tax dollars.
7 MILLIONS DECATUR PARK DISTRICT EQUALIZED ASSESSED VALUATION (EAV) '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 Series YEAR
8 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 age group, who play the most golf and generally pay full price and use a cart.
9
10 Decatur Golf Challenges i e 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. By, / of De atur s populatio will e +
11 Population Decatur Population & Golf Round Trends , , , , , FISCAL YEAR 0 Population Golf Rounds
12 Golf Rounds Comparison May November FY11/12 16/17 FY 2011/ ,599 FY 2012/ ,870 FY 2013/ ,764 FY 2014/ ,016 FY 2015/ ,523 Down 7,413 rounds FY 2016/2017 (current year) 55,110
13 REDUCED Number of holes Staff/personnel costs Chemical use Pro Shop inventory Fees at Scovill Starter Rangers OFFERED What We ve Done 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
14 2016 Unfilled Tee Times March 1 end of season (10/16) (11/21) (11/21) Scovill Hickory Red Tail All Courses Total Tee Times Available 62,648 68,224 70, ,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, ,465 Unfilled % 63% 51% 47% 53%
15 Miscellaneous Expenses Affect Our Bottom Line Item Cost Missing Total Baskets $7.00/basket 25 $ Cups, Lids, Straws $2,500.00/year Range Balls 55 cents/ball 4,000 $2,200.00/year $4,875.00
16 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
17 Capital Expenditures Cart Path Extensions Parking Lot Projects Golf Cart Replacements HVAC Improvements Equipment/Mowers/Vehicle Replacements Hickory Point Bunker Project/Irrigation System Update
18 ERA Golf Study The primary market in Decatur is over-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 re ai i g ourses. Decatur Park District Golf Analysis, Feb. 4, 2009 Economics Research Associates/AECOM
19 2013 Master Plan Despite the per eptio y 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 ourses. ~ 2013 Park District Master Plan
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