The city council is asking Troon, which manages the 36-hole, city-owned resort, to prepare a five-year strategic plan to increase revenue and make the property self-sufficient. The council suggested keeping resident fees where they are, but raising non-resident fees to make up for stagnation in golf rounds.
The City Council is asking that the managers of the municipal Indian Wells (Calif.) Golf Resort come up with a five-year strategic plan that identifies ways to increase revenue and make it self-sufficient, the Palm Springs, Calif., Desert Sun reported.
In its 2016 budget, the city projected an operating deficit of at least $217,425 for the 36-hole, city-owned resort. Course management company Troon, however, said the deficit could nearly double to $422,663, the Desert Sun reported.
By fiscal year 2025, the city could look at a deficit of $850,000, David Gassaway, assistant to the city manager, told the council. “One factor that appears to be increasing the gap is stagnation in golf rounds played,” Gassaway said.
In fiscal year 2013, there were 82,712 rounds of golf played at the resort. For 2016, Troon projects 78,606 golf rounds, or a 5 percent decline, Gassaway said.
Council members were adamant that in looking at ways to increase revenues at the resort, resident fees of $35 per round were not to be changed. However, city leaders said that Troon should look at raising non-resident fees, the Desert Sun reported.
“The golf resort has come in as one of the top-rated in California year after year,” Councilman Doug Hanson said. “What I don’t think we are getting is the top-rated fee to play.”
The strategic plan is expected to be presented to the City Council within 90 days, the Desert Sun reported.
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