INVESTMENT INCOME Investment income, which mainly includes interest income for the Golf Fund, represents 1% of the total revenues for the 2024 golf budget. Interest rates have increased significantly, thereby increasing interest income to $40,800 in the 2024 budget. The 2024 budget is based on a rate of 4.0%. CHARGES FOR SERVICES Charges for services comprise the bulk of the revenues for Golf, including green fees, cart fees and range fees, along with programs. Combined, the charges for services will be 72% of the total revenues in the 2024 budget. Revenue from charges for services is budgeted to increase 25.2%, or $731,800 compared to the 2023 budget, and increase 19%, or $582,100 compared to the projected 2023 results with both courses expected to be open for a full season after completing renovations on Springbrook Golf Course. For 2024, golf is proposing to hold green fees at 2023 levels after raising green fees in 2023. For budgeting, staff has utilized a three-year average to calculate the next year’s rounds and revenue totals, adjusting 5% for possible weather impacts or changes in demand. Management is presenting the 2024 rounds totals to be higher than the rounds total in 2023 based on the three- year average and factoring in the full season of golf at both courses. Based on these projections, green fee revenues are budgeted to increase 28.3%, or $473,900 in 2024 compared to the 2023 budget. Golf cart revenues in 2024 are budgeted to increase 33%, or $186,800, when compared to the 2023 budget, due to a full season of golf at both courses and a proposed $1 increase in select cart fees. Driving range revenues in 2024 will show a 16.1% increase in budgeted revenues compared to
the 2023 budget, with a $1 fee increase for select range baskets at both courses and increased use of the Springbrook range. Range revenues have continued to be strong each year since the range/practice facility renovations at Springbrook, and the expectation is the demand for practice facilities will continue, along with additional demand at Springbrook with the course open for the full season. Programs are budgeted to remain essentially the same as 2023 budget levels, with a reduction of less than .7%. Participation levels in most programs in 2023 were at or near capacity, and trends continue to show strong demand for group and private golf lesson programs. SALES Sales, which account for 21% of the 2024 budget, includes all concession and merchandise sales, along with membership fees. Sales are budgeted to increase 21.9%, or $195,600 compared to the 2023 budget, and increase 17.1%, or $159,400 compared to the 2023 projected total. Forecasts for 2024 sales use a 3-year average for concessions and merchandise based on estimates for a full season at Springbrook, and include a 5% increase in concession sale revenues, mainly from price adjustments. Sales also include the annual Brooks Links Memberships and Brooks Advantage Cards. Brooks Links Memberships and Brooks Advantage Card sales increased 3% in 2023, as demand continued to be strong for our membership and discount card programs. Looking forward to 2024, with continued demand for the Brooks Links Membership, staff are proposing a 5% – 7% increase for the membership fees, which is the first increase since 2021.
RENTAL INCOME Rental income, which amounts to 2% of the total 2024 budget, includes all revenues from tournaments. The tournament schedule for 2024 is planned to return to a full schedule of events, as tournaments were limited in 2022 and 2023 due to the closing of Springbrook. Revenue in 2024 is budgeted to increase 39.2% compared to the 2023 budget, with the traditional schedule of events returning with both courses open. ALTERNATIVE REVENUE Alternative revenue includes all sponsorship revenue for golf and amounts to less than 1% of the total 2024 budget. Revenue for 2024 is budgeted to increase by 11.9% when compared to the 2023 budget, with the strong golf market providing an excellent opportunity for promoting local businesses. MISCELLANEOUS REVENUE Miscellaneous revenue, which makes up 4% of the 2024 budget, includes fees charged to schools for golf teams, sales tax revenues, gratuities, employee insurance contributions and outing fees. Revenues are budgeted to increase 16.4%, or $26,700 compared to the 2023 budget, and 13.8%, or $23,000 compared to the 2023 year- end projections. The majority of the increases will be from additional sales in concessions and merchandise, resulting in an increase in sales tax revenues and gratuities.
2024 BUDGET 75
napervilleparks.org
Made with FlippingBook Digital Proposal Creator