The Parks and Recreation Committee met 06/06/2022. One of the items they reviewed was the May Revenue and Expense Report for Reid Golf Course. Although year-to-date they are trailing the 2021 revenue numbers by approximately $22,000, that was because last year the weather was so good they were able to open the golf course earlier in April. Looking at only May revenue and including no April numbers, May of 2022 actually outperformed May of 2021.
Director of Parks, Recreation, and Facilities Dean Gazza gave a full update to the committee.
They transitioned to a new Point of Sale system which went live on 05/13/2022. The new system is cloud-based which was something the IT Department wanted, instead of being on the city’s network and servers. The transition had some hiccups as was to be expected, but the staff worked through them. The beverage carts now operate with iPads that are synced up to the Point of Sale in real time which was less labor intensive than the old system.
Sometimes they can open the course and have significant business during the last two weeks in April, but this year April was not a very good month. May, however, was busier than ever and they brought in $60,000 in revenue, only the second time they had done that since the city took over operations.
Clubhouse staffing had been good all year; however, ground staff had been shorthanded on all season. He said that would improve in the next few weeks which would allow the grounds staff to catch up. Lately the grass was winning the battle because it needed to be cut every few days.
For the first time, Reid took part in No Mow May by allowing the open space north of the maintenance building and nursery to grow during May. Reid was also going to be a part of the Marigold Mile again this year.
Quotes had been received for upgrading Reid’s walk-in cooler and freezer in the basement. The cost would be carried over from 2021 funds.
They had two plumbing incidents where the toilets overflowed. In the first case, somebody had flushed a pair of underwear down the toilet and in the second they again found unspecified “items”. Needless to say, the plumber didn’t think it was funny. [Really, what kind of crazy person flushes underwear down a toilet?]
He noted that the revenue report for May actually covered the timeframe from the start of the season (often in April) through May 31st. Although the 2022 year to date revenue was lower than in 2021, that was because 2021 had a better April. He remarked that they never knew how the year was going to start just as they never knew how it would end. Sometimes they were golfing well into November, and sometimes they had snow at that point. Additionally, the amount of rain they would get throughout the season was a variable they didn’t know.
Despite the underwhelming April, they were off to a good start with over 8,400 rounds played.
Pass sales were higher than last year as were corporate pass sales and discount cards. He noted that people often buy discount cards during the holiday season and then give them out for gifts. They were continuing to advertise the discount cards.
Cart Fees were up dramatically which he attributed to the fact that during Covid they would only allow one person per cart, but now they were allowing two people per cart and so were getting double the revenue per cart. Prior to the city taking over operation of Reid, they didn’t get any of the cart fees but now that was a big revenue generator. Annual cart passes and annual range passes were also up from last year. [I’d need to see a month or two more of data on that before I was convinced there was a statistically relevant increase. I mean, we’re talking about 22 cart passes this year vs 20 last year and 12 range passes this year vs 9 last year.]
He said they had also been trying to expand their merchandise over the years. They couldn’t compete on things like golf clubs, but they could cater to people who came it and realized at the last minute that they needed some balls, a glove, tees, or a hat. [Merchandise sales were down this year compared to last year, though.]
Lessons were already up compared to last year.
“Other rentals” included the rental of additional clubs, pull carts, and locker which was a nice way to get a little extra revenue wherever they could.
Food and beverage sales were down compared to last year. He attributed that to it not being as warm as last year and thought that when it got warmer, they would see beverage sales climb dramatically.
Overall, he though revenue was pretty strong, and he was happy with it so far. He thought they were off to a good start. He opened things up for questions.
Alderperson Sheri Hartzheim (District 13) remarked that it was her first time serving on the Parks and Recreation Committee. She asked if the $592,304 listed as “available” on the Expense Report was the balance for the remainder of 2022.
Director Gazza confirmed it was.
Alderperson Hartzheim then asked if, based on his experience, that number felt like they were in a good spot and would be offset by future revenues.
Director Gazza answered that it did feel like they were in a good spot. Some of the yearly expenses happen right away in the season, such as the purchase of supplies like fertilizers, sharpening blades, new equipment, and food. He thought about $280,000 would go toward salaries and added that they might end up with some overtime in addition to that. Overall, the number felt right.
He said she was right that the expenses did get offset from revenue. If food sales were really strong, they would have to buy more food, and it would actually be a good thing if they overshot their estimated food budget because that meant they were selling more and making even more money. A similar dynamic would apply to beverages and equipment sales.
He also noted that they water the course mainly out of a pond, so that can help offset some of the water costs. If they have a good season and don’t have to irrigate as much, they can save some money there.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=978107&GUID=69EB25F7-88A5-4E96-90D7-044683247FE0
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