REPORT TO COUNCIL
SUBJECT
Title
Accept Report on Sunnyvale Golf and Tennis Operations and Approve Budget Modification No. 42 in the Amount of $300,000 for a Total FY 2016/17 General Fund Subsidy of $850,000
Report
REPORT IN BRIEF
Accept report on Sunnyvale Golf and Tennis Operations and Approve Budget Modification No. 42 in the amount of $300,000 for a total FY 2016/17 General Fund subsidy of $850,000.
BACKGROUND
The City of Sunnyvale operates two golf courses, Sunnyvale Golf Course and Sunken Gardens Golf Course, and one tennis center, Sunnyvale Municipal Tennis Center. As they are business-like activities, financial management of golf and tennis operations are currently accounted for in the Golf and Tennis Operations Enterprise Fund.
Golf and tennis operations have been operating as a stand-alone enterprise since
FY 2012/13, following the dissolution of the Community Recreation Fund, with all activities intended to be self-supporting. However, the golf operations of the Golf and Tennis Enterprise Fund has struggled to operate as a true enterprise fund due to a number of reasons including the overall decline in popularity in golf, the closure of the golf course restaurant operators, and the quality of the golf buildings. This has affected the number of rounds played at the golf courses, which have continued to decline, and additional General Fund transfers were made or approved during the last two and current fiscal years in the amount of $1.14 million to account for the loss in revenue (FY 2014/15: $140,000; FY 2015/16: $450,000; FY 2016/17: approved $550,000).
The City held a Council Study Session on September 29, 2015 to discuss the Golf program in depth. The presentation (Attachment 1) provided an overview on the golf industry decline, the program revenues and expenditures, how golf compares favorably from a cost recovery perspective to other City recreational services, and three policy options for Council Consideration: 1) Maintain current operatio...
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