2015-2016 Golf Budget by Tampa Sports Authority

A Message from the President/CEO I am pleased to present the recommended operating and capital budget for the fiscal year 2015. This budget was developed with the involvement of staff members and included a review by the Authority finance committee. As with previous budget years, the Authority continues to place an emphasis on capital improvements at the courses and this budget reflects this philosophy. As part of this budget, the Authority will be undertaking major renovations to Rocky Point Golf Course. Green complexes, including sand traps, will be renovated at the course over the next two fiscal years. Due to the continued downturn in golf participation nationally, this budget was developed to continue to improve the overall facilities and conditions at the courses, while remaining cognizant of the annual operating contribution from the City of Tampa. Golf operations are not projected to meet the financial expectations set in the FY 14 approved budget. This reduced performance is due to a combination of factors including poor weather conditions, current economic conditions, along with a national reduction in the amount of golf played across the US. The Authority continues to evaluate the organization and has worked closely with Hillsborough County and other local agencies to modify Florida Civil Service law. Changes in this law will allow the Authority an increased level of flexibility in modifying work policies and the scheduling of staff. Authority management continues to update the business plan for the golf courses allowing us to adapt to changes within the operating environment, similar to other privately operated golf courses.

Eric D. Hart, CFE President/CEO Tampa Sports Authority

About the Authority

(L-R) Bobby Silvest (VP of Marketing & Communications), Mickey Farrell (Sr. VP of Stadium Operations), Kennie Sims (VP of Golf Operations), Eric Hart (President/CEO), Janice Hosey (Executive Assistant to CEO) and Jeanette Baker (VP of Finance/Administration)

The Tampa Sports Authority is an independent special district, created by the Florida Legislature in 1965, to construct and manage sports and recreational facilities in Hillsborough County. The Authorityâ&#x20AC;&#x2122;s vision is to provide economic development and enhance the quality of life through sports and recreation. The Authority has no taxing power, but rather acts as an enterprise fund utilizing user-fees to subsidize its operating costs. As a result, all of its major capital construction projects, from the original Tampa Stadium, Golf Courses, Amalie Arena (formerly the Tampa Bay Times Forum), George Steinbrenner Field and Raymond James Stadium have been accomplished by working closely with the approvals and financial support of Hillsborough County and the City of Tampa. Babe Zaharias, Rogers Park and Rocky Point are municipal golf courses owned by the City of Tampa. The Authority has managed these courses since the mid-1970â&#x20AC;&#x2122;s, with the expressed mission of maintaining reasonably low prices for the benefit of the golfing public and will have hosted approximately 106,000 golfers in FY 2014. Provided within this report is a survey of rates from several local public courses that shows the Authority continues to offer some of the lowest green fee rates in the region.

Table of Contents Administrative Tampa Sports Authority Board of Directors .............................................. 3 Tampa Sports Authority Organizational Chart .......................................... 4

! Budget Request and Assumptions

Contribution Request ............................................................................. 5-6 Budget Notes ............................................................................................. 7 Statement of Revenues and Expenses-Comparative ............................... 8

! Events, Marketing & Memberships

2014 Marquee Events ................................................................................ 9 Marketing Initiatives ............................................................................... 10 Membership Programs ............................................................................ 11

! Capital Projects

2014 Capital Project Highlights ............................................................... 12 Proposed Capital Projects FY 2015 ......................................................... 13

! Comparisons

Paid Players Comparison ........................................................................ 14 Revenue and Expense Comparisons ....................................................... 15 Green Fee Comparisons ......................................................................16-17

Board of Directors

DON DEFOSSET CHAIRMAN

ANDREW SCAGLIONE VICE CHAIRMAN

VINCENT MARCHETTI SECRETARY/TREASURER

HON. KEN HAGAN

JOHN JAEB

RANDY LARSON

LUCIANO PRIDA, JR.

HON. FRANK REDDICK

THOMAS SCOTT

KALYN K. BRANDEWIE

TONY MUNIZ

ERIC D. HART, CFE PRESIDENT/CEO

Mission Statement

Our Role

Vision Statement

To plan, develop, promote and maintain a comprehensive complex of sports and recreation facilities for the use and enjoyment of the citizens of Tampa and Hillsborough County.

To facilitate the construction and operations of needed, user-fee supported sports and recreational facilities. To encourage and not compete with the private sector. “User-fee supported” distinguishes us from a Parks and Recreation Department.

To provide economic development and enhance the quality of life through sports and recreation.

Golf Operations Organizational Chart

BOARD OF DIRECTORS PRESIDENT/CEO Eric Hart

VP/GOLF OPERATIONS Kennie Sims

BABE ZAHARIAS DIRECTOR OF GOLF Paul Edelstein

ROCKY POINT DIRECTOR OF GOLF Jim Garrison

ROGERS PARK DIRECTOR OF GOLF TJ Heidel

Operations Manager

Lead Golf Course Assistant

Food & Beverage

Carts

Starter/ Ranger

Purchasing

Operations Manager

Maintenance Contractor

Golf Cart Maintenance Contractor

Contribution Request !

This year’s anticipated operating and maintenance (O&M) expenses outlined in this document require the Authority to request a contribution of $1,366,631 from the City for next year’s contractual obligations. This contribution is based on an operational subsidy of $(766,631) and projected capital costs of $600,000. The Authority has an existing Inter-local Agreement with the City of Tampa which states the City shall be responsible for any operating shortfalls realized by the courses. The Authority does not have an O&M Reserve Fund because of previous operating shortfalls.

Revenue assumptions for FY15: 1. Total revenues for FY15 are projected at $2,815,394. This is a decrease of $169,609 over FY13 Actual and $95,938 less than FY14 Projected. During FY14 total revenues are projected to be less than the budget by $210,691. 2. Rocky Point Golf Course will undergo a major renovation. This plan will include reconstruction of the putting greens along with the green complexes, replacement of greenside irrigation systems, renovating green side bunkers and rebuilding tee areas. An increased operating loss of $ 166,595 is projected due to a partial closing of the course during renovation. The renovation period is tentatively scheduled for May 1, 2015 – December 1, 2015. The construction cost is estimated at $792,712, with construction scheduled across two fiscal years. The costs associated with the project will also be included in the FY 16 capital and operating budgets. The FY15 construction costs will utilize $491,000 of the FY15 Capital Projects budget. 3. Adverse weather revenue losses were incorporated throughout the budget in lieu of projecting a specific month where adverse weather will affect revenues. 4. There was a 1-3% increase of golf rates during the peak season of FY14. We will continue to either reduce rates or increase rates during non-peak and peak time frames to maximize revenues. The use of dynamic pricing began in the Fall of 2013. 5. Food and Beverage revenue increases: - Increase in special events - The event revenue at Babe Zaharias has improved during FY14, due to the addition of the TECO Pavilion. - New exterior patio decks being installed at Rogers Park and Rocky Point - Kitchen enhancements are scheduled at all three golf courses to accommodate increase in business

! !

Contribution Request !

Expense assumptions for FY 15:

1. Total Expenses for FY15 are projected at $3,582,025. This is an decrease of $7,068 over FY13 Actual and $17,943 more than FY14 Projected. During FY14 expenses are projected to be at or under budget. 2. Radio and TV expenses are increased to support the new Loyalty Rewards program and gift card sales initiatives. 3. Rewards Redemption expense account was created to track the new Loyalty Rewards program. The budgeted $5,000 redemptions of merchandise and food and beverage are estimated at full retail prices. 4. The cost of Health Insurance is not projected to rise in this budget. 5. The cost of General Liability insurance is expected to increase by just less than 4%. 6. A 4% Market increase is included in the budget for the full time personnel. 7. A 3% increase in the Florida Minimum Wage is anticipated as of January 1, 2015 and is included for part time personnel. 8. Retirement costs are expected to increase by less than 0.50% (one half of 1%).

Actual FY 13

Projected FY 14

Budget FY 15

Operating Revenues

2,985,003

2,911,332

2,815,394

Operating Expenses & Non Operating Expenses

3,589,093

3,564,082

3,582,025

Net from Operations

(604,089)

(652,750)

(766,631)

Capital Costs

597,477

521,952

600,000

Profit/(Loss) including capital

(1,201,566)

$ (1,174,702)

(1,366,631)

Additional Funding Needed

(128,992)

Total City of Tampa Contribution

1,072,574

1,174,703

1,366,631

Description

Budget Notes !

1. Accrual Accounting: The Authority’s golf course budget is presented on an accrual basis. Monthly financial statements along with budget documents are presented on a full accrual basis of accounting.

2. Total City of Tampa contribution: Contribution amount is a sum of the following numbers: present year operational profits/ (losses) and capital investments.

3. “Due To” amounts: No “Due To” amounts are present between the Golf Courses and Raymond James Stadium. “Due To’s” between the individual golf courses are present throughout the year but are reconciled quarterly and zero balanced at fiscal year-end.

4. Depreciation: Depreciation has been reintroduced to the Authority audited financial statements. The Authority has worked with the City administration and Authority auditors to determine that depreciation expense for the course is better suited to be represented on the Authority’s annual financial Audit. Depreciation is not included in any financial requests from the Authority to the City of Tampa since it is a non-cash occurrence within the financial statements. Depreciation will not be included in the monthly financial statement for ease of reading but will be included in the year end Audited financial statements.

5. Salaries: Wages include full-time, part-time and over-time estimates and corresponding benefits such as social security, retirement and health insurance.

6. Capital costs: Reimbursement for proposed capital costs is provided by the City of Tampa net of any operating surplus.

7. Income tax: The Authority is a governmental agency and therefore exempt from Federal and State income taxes under provisions of the Internal Revenue Code and the Florida Income Tax Code, respectively. There are no provisions for income taxes in the budget.

Golf Operations Revenue & Expenses

2014 Marquee Events Men’s City Open This premier event dates back over 100 years and the challenging layout of Rogers Park provides fierce competition. Congratulations to Matt Jackson, who successfully defended his title with scores of 66-72 -- 138. Matt is a four time winner of this event.

Men’s Senior City Open On October 26th & 27th , the annual City Senior Open Championship was held at Babe Zaharias Golf Course. Our six-time defending champion Dick Clemens reclaimed the title. Our other flight winners included: Jack Hinton (B Flight – Gross), Donald Kerr (B Flight – Net), Ho Yim (C Flight –Gross), Mike Knapp (C Flight – Net). First ever Senior Professional division winner was Larry Brunner.

Babe Day Babe Didrikson Zaharias was born on June 26, 1911. Every year, her birthday is celebrated by hosting a four person scramble event. This year’s event sold out with over 100 golfers to celebrate the Babe’s legacy. Proceeds from this event support the Moffitt Cancer Center.

Battle at the Babe The Battle at the Babe is an exhibition golf match featuring some of the top PGA and LPGA players that reside in the Tampa area. Over the past five years the field has included Champions Tour member Gary Koch, Woody Austin and LPGA major champion, Brittany Lincicome. Proceeds from this event benefit The First Tee of Tampa Bay.

The Authority hosted over 75 golf tournaments and 8 summer leagues at our 3 courses.

Marketing Initiatives Holiday Gift Card Sales A Holiday gift card promotion in December saw a 153% increase in sales over the previous year. The promotion offers a free $5 bonus card for every $25 purchase a consumer makes. Also executed similar promotion in May for Dads & Grads, with a 52% increase over the previous year.

New Menu Implementation In July, new menus were implemented at all three courses to improve overall presentation and to evaluate each item for optimum profitability. New items were added to increase selection and maximize returns.

Logo Redesigns The logos of Rocky Point and Rogers Park were redesigned to give them a more contemporary look.

Monthly Eblasts The monthly e-newsletter continues to evolve as an effective retail communication. This goes out once a month to the over 12,000 golfers in our database and promotes special events, promotional pricing and memberships.

Membership Programs Tradition Membership Plan Information

Membership in the Tradition Membership Plan provides prepaid golf privileges at all (3) Tampa Sports Authority Golf Courses (Babe Zaharias, Rocky Point and Rogers Park). Membership includes walking privileges or ½ cart at the special rate of $12.00 for 18 holes, $7.00 for 9 holes or $10 for twilight. This membership is valid for one year from date of purchase. Membership Fee Information • Single membership (7 days playing privileges) $74.50 per month • Family membership (Husband & Wife, 7 days playing privileges) $94.50 per month • Dependent Children under the age of 14 free (Added under the Family Membership) $25.00 for each dependent between the ages of 15-18, per month.

! Total Memberships Up 3% for FY 2014

Tampa ! Sports Authority Discount Golf Card Enjoy up to 25% savings on every round of golf at Babe Zaharias, Rogers Park and Rocky Point golf courses. TSA Discount Golf Cards are offered for purchase and are usable for unlimited play for one year from date of purchase. A special card purchase discount will be offered for residents of the City of Tampa. A special green fee discount is offered to seniors over the age of 55. Green fees for the day is included the day of the card purchase.

2014 Capital Project Highlights Babe Zaharias In 2014, the roof on the clubhouse was replaced. The modern shingle color matches the roof of the cart building which was renovated last year.

Rogers Park The shingle roof on the short course pavilion was replaced in Dec. This improvement allows the TECO Pavilion to be rented out to patrons looking for an affordable and scenic backdrop for their outdoor picnics, cookouts and parties.

Rocky Point The practice area at Rocky Point continues to improve with the addition of a well-designed chipping green. Conveniently located next to the driving range.

FY 2014 Capital Projects Summary COURSE

IMPROVEMENTS

Babe Zaharias

$174,132

Rogers Point

$173,133

Rocky Point

$174,687 Total

$521,952

Proposed Capital Projects FY 2015

ROCKY POINT

CAPITAL PROJECT

ROGERS PARK

BABE ZAHARIAS

Course Improvements

386,500 $

5,000 $

5,000

Cart Building Improvements

2,000 $

3,000 $

Kitchen Equipment

10,000 $

5,000 $

10,000

Patio Deck

30,000 $

Ten (10) Electric Golf Carts

41,000 $

0 $

Tree Program

0 $

3,000 $

5,000

Maintenance Building Improvements

0 $

5,000

Project Contingencies

21,500 $

19,000 $

19,000

TOTALS

491,000 $

65,000 $

44,000

Paid Players Comparison

FY11-12

FY12-13

FY13-14 FY14-15 PROJECTED BUDGETED

Babe Zaharias

36,998

38,768

36,716

36,750

Rogers Park

28,823

29,069

29,156

29,250

Rocky Point

40,544

40,172

40,183

38,608

106,365

108,009

106,055

104,608

Total Paid Players

110000 99000 88000 77000 66000 55000 44000 33000 22000 11000 0 Babe Zaharias

Rogers Park

Rocky Point

FY 11-12 FY 12-13 FY13-14 Projected FY 14-15 Budgeted

Total Paid Players

Revenue & Expense Comparisons Year 1

Year 2

FY 11-12 FY 12-13

Year 3

Year 4

FY13-14

FY14-15

PROJECTED

BUDGETED

$3,200,000 $3,083,333 $2,966,667 $2,850,000

Total Revenue

$3,109,590 $2,985,003

$2,911,332 $2,815,394

$2,733,333 $2,616,667 $2,500,000

Year 1 Year 2 Year 3 Year 4

$550,000 $520,000

Total General Administration Expense

$490,000

$487,428

$495,049

$508,815

$549,880

$460,000 $430,000 $400,000

Year 1 Year 2 Year 3 Year 4

$1,200,000 $1,140,000

Total Clubhouse Expense

$991,768 $1,115,783

$1,088,180 $1,101,993

$1,080,000 $1,020,000 $960,000 $900,000

Year 1 Year 2 Year 3 Year 4

$1,670,000

Total Course Maintenance

$1,636,000

$1,602,095 $1,638,912

$1,665,776 $1,645,682

$1,602,000 $1,568,000 $1,534,000 $1,500,000

Year 1 Year 2 Year 3 Year 4

Green Fees Comparison COURSE

COUNTY

Rogers Park Senior Babe Zaharias Senior

Hills. Hills.

$ 17.76 $ 18.69

$ $

TWILIGHT 15.88 15.89

Rocky Point Senior

Hills.

$ 18.69

15.69

Rogers Park Card Babe Zaharias Card Rocky Point Card Rogers Park Regular Heritage Isle Quail Hollow

Hills. Hills. Hills. Hills. Hills. Pasco

$ $ $ $ $ $

18.69 20.56 20.56 24.29 25.00 $ 22.00 25.00 $ 20.00

$ $ $ $

16.82 16.82 16.82 19.62

Scotland Yards Crescent Oaks Diamond Hill Babe Zaharias Regular USF Tampa Bay Golf Rocky Point Regular Chi Chi Rodriquez Summerfield Walden Lakes Lakes Heritage Harbor Pebble Creek Mangrove Bay Wentworth Northdale McDill Golf Course Bloomingdale Apollo Bch Golf & Sea Lexington Oaks Summerfield Dunedin Fox Hollow Lake Jovita River Hills Westchase Eagles Golf Course

Pasco Pasco Hills Hills. Hills. Pasco Hills. Pinellas Hills Hills. Hills. Hills. Pinellas Pasco Hills. Hills Hills Hills Pasco Pinellas Pinellas Pasco Pasco Hills Hills. Hills

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

25.00 25.00 25.00 25.23 26.00 26.00 26.17 28.00 29.00 29.00 30.00 30.00 30.00 30.00 32.00 32.00 35.00 35.00 35.00 37.00 39.00 40.00 40.00 45.00 49.00 42.00

$ 20.00 $ $ 19.00 $ $ 20.00 $ $ 20.00 $ $ 24.00 $ $ $ 22.00 $ $ 24.00 $ $ 26.00 $ $ 20.00 $ 25.00 $ $ 30.00 $ $ 20.00 $ $ 29.00 $ 25.00 $ $ 29.00 $ $ 25.00 $ 30.00 $ $ 27.00 $ $ 32.00 $ $ 30.00 $ $ 35.00 $ 35.00 $ 31.00 $ 33.00 $

18.00 15.00

! Weekend-Summer

20.56 15.00 18.00 20.56 18.00 19.00 25.00 20.00 30.00 18.00 23.00 25.00 23.00 23.00 25.00 25.00

23.00

! Weekday-Summer

COURSE

COUNTY

Rogers Park Senior Scotland Yards Rogers Park Card Babe Zaharias Senior Babe Zaharias Card Rocky Point Card Rocky Point Senior Crescent Oaks Tampa Bay Golf Walden Lakes Lakes Mangrove Bay Chi Chi Rodriquez Diamond Hill Quail Hollow McDill Golf Course Heritage Isle Babe Zaharias Regular Rogers Park Regular USF Apollo Bch Golf & Sea Pebble Creek Wentworth Rocky Point Regular Summerfield Heritage Harbor Summerfield Bloomingdale Northdale Lexington Oaks River Hills Eagles Golf Course Dunedin Fox Hollow Lake Jovita Westchase

Hills. Pasco Hills. Hills. Hills. Hills. Hills. Pasco Pasco Hills. Pinellas Pinellas Hills Pasco Hills Hills. Hills. Hills. Hills. Hills Hills. Pasco Hills. Hills Hills. Pinellas Hills Hills. Pasco Hills Hills Pinellas Pasco Pasco Hills.

Survey taken August 2014

AM $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

23.36 25.00 25.23 26.17 27.10 27.10 27.10 28.00 29.00 30.00 30.00 30.00 30.00 32.00 32.00 33.00 33.64 33.65 34.00 35.00 35.00 35.00 36.45 37.00 37.00 37.00 39.00 39.00 40.00 45.00 49.00 49.00 50.00 55.00 59.00

PM $ 17.76 $ 20.56 $ 19.62 $ 18.69 $ 20.56 $ 20.56 $ 20.56 $ 23.00 $ 27.00 $ 27.00 $ 30.00 $ 22.00 $ 25.00 $ 28.00 $ 32.00 $ 28.00 $ 25.23 $ 24.29 $ 26.00 $ 25.00 $ 30.00 $ 25.00 $ 25.23 $ 27.00 $ 22.00 $ 27.00 $ 32.00 $ 34.00 $ 35.00 $ 35.00 $ 37.00 $ 32.00 $ 35.00 $ 45.00 $ 31.00

TWILIGHT $ $ $ $ $ $ $ $ $ $ $ $

15.88 18.69 16.82 15.89 16.82 16.82 16.82 15.00 18.00 25.00 30.00 18.00

23.00

$ $ $

20.56 19.62 20.00

$ $ $ $

25.00 20.00 22.43 23.00

$ $

23.00 25.00

28.00

$ $ $

23.00 25.00 30.00

21.00

Green Fees Comparison COURSE

COUNTY

Rogers Park Senior Scotland Yards

Hills. Pasco

$ $

24.29 $ 23.36 $ 25.23 $ 18.69

16.82

Rogers Park Card Babe Zaharias Senior Rocky Point Senior Babe Zaharias Card Rocky Point Card Heritage Isle Quail Hollow Walden Lakes Lakes Heritage Harbor Rogers Park Regular Rocky Point Regular Tarpon Springs Pebble Creek Chi Chi Rodriquez Babe Zaharias Regular Mangrove Bay USF Bloomingdale Northdale Plantation Palms Apollo Bch Golf & Sea Westchase Summerfield

Hills. Hills. Hills. Hills. Hills. Hills. Pasco Hills. Hills. Hills. Hills. Pinellas Hills. Pinellas Hills. Pinellas Hills. Hills Hills. Pasco Hills Hills. Hills

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

25.23 25.23 25.23 26.17 26.17 29.00 30.00 30.00 30.00 32.70 33.64 34.00 34.00 34.00 34.58 36.00 37.00 37.00 45.00 45.00 46.00 55.00 39.00

$ $ $

17.75 17.76 17.76

18.69

$ $ $ $

20.00 24.00 20.00 20.56

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

! Weekend-Season

24.29 23.36 22.43 25.23 24.30 25.00 30.00 27.00 27.00 27.10 28.04 26.00 29.00 27.00 28.97 25.00 31.00 32.00 37.00 35.00 35.00 39.00 29.00

Twilight

! Weekday-Season

21.00 24.00 $ 20.00

$ $ $

26.00 25.00 26.00

$ $

25.00 36.00

COURSE

COUNTY

Scotland Yards Babe Zaharias Senior

Pasco Hills.

$ $

25.23 $ 27.10 $

20.56 $ 25.23 $

18.69 17.76

Rocky Point Senior Rogers Park Senior Rocky Point Card Babe Zaharias Card

Hills. Hills. Hills. Hills.

28.03 $ 24.30 $

17.76

$ $ $

28.03 $ 28.04 $ 28.97 $

25.23 $ 26.17 $ 27.10 $

16.82 17.76 18.76

Rogers Park Card

Hills.

29.90 $

27.10 $

17.75

Walden Lakes Lakes Tarpon Springs Quail Hollow Heritage Harbor Chi Chi Rodriquez Mangrove Bay Rogers Park Regular Heritage Isle Pebble Creek Bloomingdale USF Apollo Bch Golf & Sea Summerfield Plantation Palms Northdale Westchase

Hills. Pinellas Pasco Hills. Pinellas Pinellas Hills. Hills. Hills. Hills Hills. Hills Hills Pasco Hills. Hills.

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

32.00 34.00 35.00 35.00 35.00 36.00 36.45 37.00 39.00 42.00 44.00 46.00 47.00 49.00 50.00 65.00

29.00 26.00 28.00 30.00 27.00 25.50 29.90 27.00 34.00 35.00 35.00 35.00 34.00 39.00 43.00 55.00

$ $ $ $ $

26.00 21.00 20.00 20.00 20.00

20.56

$ $ $

24.00 25.00 26.00

25.00

$ $

26.00 25.00

Survey taken December 2013

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Twilight