Revenue declines at the course were also hampered by a road construction project last year and a cold wet winter that kept golfers away in record numbers.
In 2013, the club’s golf and pro shop reported $1.4 million in revenue — an 18 percent decrease compared to $1.7 million reported the previous year, according to the city.
“The operations are reasonably close to breaking even,” said Beavercreek City Manager Mike Cornell. “So, the city’s greatest burden is the ongoing debt service.”
The city purchased the 18-hole golf course in 2004, and annually subsidizes the course’s budget to cover bond payments, according to city officials. The city transferred almost $1 million last year to cover bond payments which total more than $7.1 million, according to city data.
“When the debt service is analyzed versus the remaining time related to that debt service …as a public facility we will probably be OK as time goes on,” Cornell said.
The final payment dates on the bonds are scheduled for 2023 and 2028.
The golf course also saw a 14 percent decline in event revenues which totaled $363,884 last year. The club booked the same number of parties in 2012 and 2013, however reductions in party size resulted in smaller revenues, according to a financial report.
“One of the things that has been very effective for us, is that we have been very aggressive about identifying opportunities that are not traditional golf-related opportunities,” Cornell said. “Opportunities that are not reliant on good weather so that you can get rounds in such as utilizing our golf club for other events 12 months a year.”
One of the floods occurred Jan. 25, just four days before the Greene County Republican Party Lincoln Day Dinner was to be held at the clubhouse. About 250 guests were expected including Gov. John Kasich, former governor Bob Taft and Ohio Attorney General Mike DeWine, said Steve Klick, the Beavercreek Golf Club director.
“We extracted 350 gallons of water from the entire carpet in the clubhouse,” Klick said. “It was a crazy 96 hours.”
The carpets were cleaned and the walls were repainted. The following day, contractors started the renovation, according to Klick.
Renovations included repairing damage to locker rooms, the golf shop and hallways.
The insurance company is investigating the cause of the flooding. It’s unclear how water and condensation got into the pipes, Klick said.
The club lost an estimated $20,000 in revenue while it was closed. The revenue loss will be covered by insurance, however the city will have to pay a total of $10,000 to cover the deductible on both insurance claims, Klick said.
Last year 25 weddings were booked at the club marking the lowest number of weddings scheduled over a nine year period, according to city data. However, 23 weddings have been booked at the club for 2014.
“Early indications are this will be an excellent year for those types (non-golf) of events… I think the key in remaining viable is to maximize those non-traditional golf season events,” Cornell said
The city attributes the decline in revenues related to reductions in green fees, ancillary services and the driving range to a a 90-day period last year when part of New Germany Trebein Road was closed for construction. The course lost about 30 golfers a day who were deterred by the detour or limited access, according to the financial report.
The same report also attributes the revenue declines to weather-related woes. In 2013, golf rounds totaled 23,800 compared to 29,800 in 2012 when warmer temperatures led to an earlier season and more rounds being played.
Beavercreek Golf Club’s revenue declines come at a time when some government-owned golf courses are choosing to save money by closing or selling.
The district for the combined Springfield and Clark County parks and recreation department permanently shut down Snyder Park Golf Course — a 93-year-old course — on Jan. 25.
Last year, Snyder Park Golf Course operations cost $644,682 and the district expects to spend approximately $1.07 million operating two 18-hole golf courses at Reid Park this year, said Leann Castillo, the National Trail Parks and Recreation District director.
“The National Trail Parks and Recreation District has operated three 18-hole golf courses for many years,” she said. “In 2014, NTPRD was faced with cutting $350,000 from our budget. Our board had been looking at our golf course operations for several years and was at a point that we would need to close one or more of our golf courses in order to become more self-sustaining.”
Government-owned courses may be struggling because the golf industry did not grow as much as expected, said Middletown City Manager Judith Gilleland.
“There have been many courses built in the last two decades in this region which increased the supply without an increase in demand,” Gilleland said. “Also, many working people today don’t have the time it takes to play 18 holes, especially if they have children who are involved in activities.”
Middletown is looking to reduce its budget by selling Weatherwax Golf Course — a 36-hole course which is operating with annual subsidies from the city, according Gilleland.
The city received several bids for the course after council voted to sell it, Gilleland said. So far the highest bid is $1.6 million and the city is working to finalize a sales contract which will be voted on by the council.
“Although Weatherwax Golf Course is a great asset for the community and region, we could not afford to subsidize the course any longer,” Gilleland said. “The annual subsidy to the golf course has been $350,000 - $400,00 per year for several years now.”
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