Вы находитесь на странице: 1из 15

Battle Creek Parks and

Recreation
2015

Background and
History of Operations

1957 1962 1970 1985


578 acres of land
(known as
Charles Binder
Park) is donated
to The City of
Battle Creek

Deed restrictions
require land to be
used for
community
recreational
opportunities

The City of Battle


Creek builds an
18-hole golf
course

The City of Battle


Creek creates an
enterprise fund
requiring the golf
course to pay its
own way.

A 25 year
renewable lease
agreement for 60
acres is
established with
the Binder Park
Zoological Society

Background
History of Operations

1990 1991 1995 2000


115 acres of
land
adjacent to
the golf
course is
purchased
by the City
of Battle
Creek

340
additional
acres are
leased to
Binder Park
Zoological
Society

1.64
additional
acres are
purchased
by the City
of Battle
Creek

The City
invests 3.5
million dollars
to add an
additional 12
holes, driving
range,
clubhouse
and First Tee
facility

Background
History of Operations
2008s

Southwest Michigan economic crisis


greatly affected rounds of play and
revenues to support the new facility and
increased bond payments.
The City sold potential park property on
Southwest Capital and used that revenue to
help offset the golf courses growing deficit.
Bond payments were restructured with the
intention that the economy would turn
around enough to cover the escalating debt
payments.

Todays Golf Market


Nationally

the economy has taken an upward


turn, however, the number of rounds of golf
being played has not recovered to its
prerecession levels.
Local market continues to be saturated with
comparable golf courses.

Binder Park Golf Course


2015 Facility Usage

Approximately 40,000 golf starts each year

Year

round facility offering traditional golf


for all ages and abilities.

First Tee youth golf program (4,500+ participants)


PGA Junior League
23+ golf leagues
St. Phil and Harper Creek High School golf
teams
Several non-profit fundraising golf outings
9-hole foot golf course

Binder Park Golf Course


2015 Facility Usage

Virtual simulated golf leagues

Winter

Sports Park

Cross country skiing


Sledding
Snow shoeing

2015 YTD Budget


2016 Projected Budget
Projected

2015

Proposed

2016

Income
Green Fees

$276,697

$282,783

Memberships

69,340

71,980

Golf Cart Fees

215,803

223,297

22,100

22,790

Club House - (Pro Shop, Lounge)

386,200

367,800

Golf Programs, Lessons & Sponsorships

101,666

101,666

2,176

19,000

Range

Non-Golf Related Revenues & Misc *


Sale of Land

160,000

Transfers-In

51,201
Income

$1,125,183

$1,249,316

$967,714

$949,346

160,000

165,000

77,264

71,976

500

500

Expenses and Bond Payments

$1,205,478

$1,186,822

Change in Net Assets

-80,295

62,494

Unrestricted Net Assets Balance

$100

$62,594

Expense
Total Operating Expenses
Bond Principal
Bond Interest
Bond Agent Fee

Budget Projection
2016 - 2020
Projected

2015

Proposed

2016

Projected

2017

Projected

2018

Projected

2019

Projected

2020

Income
Green Fees

$276,697

$282,783

$282,783

$282,783

$282,783

$282,783

Memberships

69,340

71,980

$71,980

$71,980

$71,980

$71,980

Golf Cart Fees

215,803

223,297

$223,297

$223,297

$223,297

$223,297

22,100

22,790

$22,790

$22,790

$22,790

$22,790

Club House - (Pro Shop, Lounge)

386,200

367,800

$367,800

$367,800

$367,800

$367,800

Golf Programs, Lessons & Sponsorships

101,666

101,666

$101,666

$101,666

$101,666

$101,666

2,176

19,000

$55,000

$130,000

$135,000

$140,000

160,000

$70,000

$1,125,183

$1,249,316

$1,195,316

$1,200,316

$1,205,316

$1,210,316

$967,714

$949,346

$949,346

$949,346

$949,346

$949,346

160,000

165,000

$170,000

$175,000

$180,000

$185,000

77,264

71,976

$71,976

$71,976

$71,976

$71,976

500

500

$500

$500

$500

$500

Expenses and Bond Payments

$1,205,478

$1,186,822

$1,191,822

$1,196,822

$1,201,822

$1,206,822

Change in Net Assets

-80,295

62,494

3,494

3,494

3,494

3,494

Unrestricted Net Assets Balance

$100

$62,594

$66,089

$69,583

$73,077

$76,571

Range

Non-Golf Related Revenues & Misc *


Sale of Land
Transfers-In

51,201
Income

Expense
Total Operating Expenses
Bond Principal
Bond Interest
Bond Agent Fee

Financial Position
As depicted in the projected budget overview, the
Golf Course is unable to continue to cover
operational costs with the escalating bond payments.
As the golf course continues on with its current means
of operation, alternate solutions need to be discussed
and a direction needs to be established that fits within
the communitys recreation needs, Citys financial
abilities and the lands deed restrictions.

New Revenue Opportunities to


be Implemented
Wedding Receptions and other
Corporate Meeting/Event space

Outdoor Festivals, Events and/or


Concerts in collaboration with other
community partners

295 Acres
Binder Park Golf
Course
Sale of 39 acre Collige Farm property, 2
residential lots in Woodland Hills, and 20
acres on the golf course (non-deed
restricted property)
*estimated value $275,000

Other Non-Golf programming


opportunities

Operational Business Lease


with a 3rd Party
Golf Management Company
Simultaneous

to the implementation of
new internal revenue opportunities, the
City will explore the possibility of
negotiating a 3rd party management
contract to operate the golf course.

THE PLAN:
What Action is needed
right now?
Approval

of a 2016 (calendar year) Golf


Course budget prior to January 1, 2016.
Staff will develop and implement non-golf
revenue producing programs/business
plan beginning with the 2016 budget year.
City will market and begin the sell of
excess land to support Golf Course
operations in the near term.