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 opened while 148.5 closed • Closings outpaced openings for the 10 th consecutive year

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

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: $55,320 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.

DECATUR PARK DISTRICT EQUALIZED ASSESSED VALUATION (EAV) 1000 900 800 700 600 MILLIONS 500 400 300 200 100 0 '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. YEAR

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 Since 1980… • 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 2017, 1/3 of Decatur’s population will be 65+

Decatur Population & Golf Round Trends 86000 250,000 84000 82000 200,000 80000 78000 150,000 76000 Population 74000 100,000 72000 70000 50,000 68000 66000 0 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 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 Down 7,413 FY 2014/2015 59,016 rounds FY 2015/2016 62,523 FY 2016/2017 (current year) 55,110

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

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

Golf Revenue vs. Expenses: Total Subsidy Net Operating Capital Total Golf Fiscal Year Golf Revenue Golf Expense Loss/Gain Expenditures 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 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 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