The Staunton (Va.) City Council is discussing whether the 100-year-old municipal course should close amid continued losses. But a closing would result in only a small percentage of savings of current maintenance costs, which make up the bulk of expenses, because staff would still be used for other city properties and repurposing the course would still require upkeep. Advocates of keeping the course open have pointed to a recent gain in rounds played.
As the Staunton (Va.) City Council has begun discussions on whether the 100-year-old Gypsy Hill Golf Club should close amid continued revenue losses, reporters from The News Leader of Staunton sat down with City Manager Steve Rosenberg and Chief Finance Officer Phil Trayer to get answers to questions that have been raised about the golf course’s operations and financial status, including where the bulk of the property’s expenses are incurred, and how the golf course’s net loss compares to other activities funded by the city of 24,000’s Department of Parks and Recreation.
Here is the The News Leader’s report after its interviews with city officials:
• Maintenance salaries make up the bulk of expenses
Course expenses totaled $440,077 for the 2019 fiscal year, which lasted July 1, 2018, to June 30, 2019. Of that, $283,523 came from the city’s park maintenance allocation.
The city allocates a certain amount of money within the Department of Park and Recreation’s budget toward park maintenance. Of that, a certain amount is allocated toward golf course maintenance.
The final allocation for fiscal year 2019 final was not yet available, Trayer told The News Leader. But based on fiscal year 2018, about 63% of the course’s $289,697 in maintenance allocation went toward maintenance worker salaries and benefits.
• What would happen if the course were to be closed?
Staff performs maintenance at other areas in the city and not just the golf course, Trayer told The News Leader. So if the course were closed, their salaries would still be paid.
If there was a closing, Rosenberg added, the city council would have to decide exactly what to do with the land, but it would likely still have to be maintained, regardless of whether it was turned into a park, garden or something else entirely. Even if the council allowed the land to become a wildlife habitat, he added, that would still require some maintenance, because the city would probably want to provide a walking path through the property.
• How much would the city save if the course closed?
Total savings each year would equal about $45,000, based on fiscal year 2019 data.
The total net loss for the fiscal year 2019 was $351,230, including both operational and fixed costs. Because a bulk of that comes from costs that would remain regardless of the course’s closure, the savings would be relatively small, Trayer explained.
The total savings is calculated based on savings from operating costs and savings from fixed costs. From the fixed costs, there would be a savings of about $28,886. Those savings would come from things like using fewer chemicals and performing fewer repairs, Trayer said.
But most of the maintenance costs are considered “fixed.” The city also has to pay off its debt service—over $37,000 per year for the next 15 years—for an irrigation system installed in 2008.
The city would also save about $15,475 in operational costs. That savings is calculated by subtracting the city’s course revenue from the operational costs, not including depreciation. If the course closed, it wouldn’t have to pay for operations, but it also wouldn’t have any revenue from the course, either.
The course made $88,848 in the 2019 fiscal year from green fees, cart rentals and membership fees.
“Ideally we would like to see an increase in revenue,” Rosenberg told The News Leader. The city also wants to keep the course affordable and maintain Gypsy Hill’s status as the least-expensive course in the area, he added.
Based on a snapshot period of one month’s data, rounds of golf played at Gypsy Hill increased by 60% in July 2019 (1,239) compared to July 2018 (755), The News Leader reported. But a year-to-year chart showed that annual rounds had dropped from around 16,000 in 2003 to a projection of about 7,000 for 2019.
• Other activities funded by the city also lose money.
Those who wish to see the Gypsy Hill course stay open have pointed out that the city provides recreational activities for the benefit of people’s quality of life, not to turn a profit, The News Leader reported, and that the city’s swimming pools also lost money last year.
Staunton lost an approximate combined $79,000 during the 2018 season from the two city swimming pools, according to data provided by the city. There were 14,985 total patrons during the 2018 season, so the city spent around $5 per person to cover the revenue loss.
• What are the next steps toward a decision for Gypsy Hill GC?
Council members have asked the city for additional data it doesn’t yet have, Rosenberg told The News Leader, and the city is spending several months collecting more information than usual from golfers.
In particular, the city is trying to determine how many individual people golf at Gypsy Hill, and whether they live in Staunton or elsewhere.
The city council also plans to host a public hearing at some point, but a date has not been set, The News Leader reported. Previously, Councilwoman Andrea Oakes held her own town hall to hear from residents. She presented data from this year that showed a positive upswing in rounds played, which many golfers said was because of better weather and maintenance.
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