Page 173 - CITY OF AZLE, TEXAS

GOLF COURSE FUND – IN BRIEF

REVENUES

Total golf revenue for FY 2023-24 is projected at $1,964,500 and represents an increase of
$226,500 from the original FY 2022-23 budget. This is attributed to an increase in the level of
golf play at the course, an anticipated rate increase to be implemented during the first quarter of
the fiscal year, and increased interest earnings. Projected revenue does not include any funds
derived from natural gas well leases at the golf course. Overall golf-related revenues are based
on an expected 40,000 rounds of golf. The following chart is a graphical representation of
operating revenue and expenses for the golf course since FY 2019-20.

As shown by the chart, revenue has been in an upward trend for several years. Based on recent
trends in the level of play, Staff expects the golf course to continue to perform in this manner.
Expenses are expected to exceed revenue in FY 2023-24 and FY 2024-25 and will be
discussed below.

EXPENSES

Total Golf Course Fund expenses as approved by the Council are projected at $2,053,873,
which is an increase of $410,466 over the original FY 2021-22 budget. The majority of this
increase is attributable to the renovation of the driving range at an estimated cost of $200,000
this fiscal year and $200,000 in FY 2024-25. The remainder of the increase is driven by funding
for an additional course maintenance employee, projected increases in employee benefits,
funding for annual step increases, funding for a 5% market adjustment to the salary plan,
various equipment purchases, various course and pro shop improvements, increases for resale
items needed due to the increased levels of play, and funds to address various maintenance
issues.

Operating expenses are projected to exceed operating revenue by $89,373 as a result of the
capital improvements to the driving range. As previously mentioned in this document, the Golf

City of Azle FY 2023-2024 Budget 162