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Home My Public Portal AboutGolf DepartmentSPECIAL REVENUE FUND FY2018 FY2019 GOLF DEPARTMENT - MGL Chapter 40 S 5F FY2017 DEPT HEAD TOWN ADMINISTRATOR % CHANGE YR / YR $ CHANGE YR / YR EXPENDED EXPENDED APPROPRIATED REQUEST #1 RECOMMENDED WAGES: Full-time Maintenance 547,282$ 563,501.20 $ 594,449 $ 616,957 3.8% $ 22,508 Part-time Maintenance 223,099$ 240,563.05 $ 261,282 $ 301,767 15.5% $ 40,485 Full-time Administrative 232,625$ 238,713.54 $ 245,278 $ 253,962 3.5% $ 8,684 Part-time Administrative 225,675$ 223,655.46 $ 217,050 $ 209,623 -3.4% $ (7,427) Overtime 45,146$ 49,044.47 $ 46,250 $ 47,638 3.0% $ 1,388 Longevity 16,859$ 15,901.50 $ 17,723 $ 17,206 -2.9% $ (517) Clothing Reimbursement 7,453$ 5,097.44 $ - $ - $ - $ - Contractual Obligations -$ 0.00 $ - $ - $ - $ - SUB TOTAL 1,298,139.00 1,336,476.66 $1,382,032 1,447,153$ -$ 4.7% $ 65,121 GENERAL EXPENSES; Clothing-Maint -$ 3,987.49 $ 8,500 $ 8,500 0.0% $ - Clothing-Admin -$ 1,656.89 $ 2,000 $ 2,000 0.0% $ - Oil/Grease - Maint 1,474$ 2,142.41 $ 4,000 $ 3,000 -25.0% $ (1,000) Diesel Fuel - Maint 9,086$ 12,032.63 $ 12,650 $ 13,500 6.7% $ 850 Heating - Maint 2,355$ 2,992.11 $ 2,300 $ 3,000 30.4% $ 700 Heating - Clubhouse 11,261$ 11,263.50 $ 10,500 $ 11,000 4.8% $ 500 Gasoline - Maintenance 7,195$ 11,796.06 $ 11,000 $ 11,500 4.5% $ 500 Electricity - Maint 9,423$ 6,481.15 $ 8,000 $ 6,000 -25.0% $ (2,000) Electricity - Clubhouse 43,087$ 36,458.70 $ 40,000 $ 36,000 -10.0% $ (4,000) Electricity-Irrigation 27,985$ 21,433.80 $ 26,000 $ 22,000 -15.4% $ (4,000) Electricity-Drive Range 6,779$ 3,823.71 $ 4,000 $ 4,000 0.0% $ - R & M Equipment 72,346$ 90,095.00 $ 75,000 $ 75,000 0.0% $ - R&M Irrigation Maint.61,244$ 39,279.57 $ 30,000 $ 30,000 0.0% $ - Professional/Technical 1,778$ 3,352.35 $ 5,000 $ 4,500 -10.0% $ (500) Phone - Maintenance 636$ 667.61 $ 650 $ 600 -7.7% $ (50) Phone - Clubhouse 966$ 979.65 $ 950 $ 850 -10.5% $ (100) Alarm - Maintenance 1,141$ 1,084.40 $ 1,100 $ 1,100 0.0% $ - Alarm - Clubhouse 4,525$ 5,746.29 $ 4,000 $ 2,000 -50.0% $ (2,000) Office Supplies - Admin 8,346$ 9,115.77 $ 9,000 $ 9,000 0.0% $ - Score Cards 3,480$ 3,220.00 $ 3,600 $ 3,600 0.0% $ - Maintenance Supplies 8,876$ 10,581.90 $ 9,000 $ 8,000 -11.1% $ (1,000) Range Supplies 10,061$ 7,645.54 $ 10,000 $ 8,000 -20.0% $ (2,000) Computer Supplies 7,173$ 6,675.60 $ 7,000 $ 7,000 0.0% $ - Office Supplies - Maint 409$ 375.44 $ 1,000 $ 500 -50.0% $ (500) FY2020 Golf 2/25/2019 SPECIAL REVENUE FUND FY2018 FY2019 GOLF DEPARTMENT - MGL Chapter 40 S 5F FY2017 DEPT HEAD TOWN ADMINISTRATOR % CHANGE YR / YR $ CHANGE YR / YR EXPENDED EXPENDED APPROPRIATED REQUEST #1 RECOMMENDED FY2020 Custodial Supplies 6,577$ 10,898.58 $ 16,000 $ 16,000 0.0% $ - Rubbish Removal/Sanit.15,421$ 19,886.19 $ 16,000 $ 22,500 40.6% $ 6,500 Seed & Sod 35,383$ 24,060.95 $ 25,000 $ 25,000 0.0% $ - Tee & Green 8,419$ 4,707.95 $ 8,000 $ 8,000 0.0% $ - Landscaping 2,957$ 3,633.01 $ 4,500 $ 5,000 11.1% $ 500 Topsoil & Sand 22,291$ 57,659.00 $ 30,000 $ 30,000 0.0% $ - Fertilizer 72,922$ 88,861.92 $ 80,000 $ 80,000 0.0% $ - Fungicide 129,432$ 94,907.09 $ 135,000 $ 135,000 0.0% $ - Insecticides 11,784$ 10,347.31 $ 15,000 $ 15,000 0.0% $ - Misc(wetting agents)55,312$ 43,865.01 $ 50,000 $ 50,000 0.0% $ - Cart Lease 119,986$ 119,985.60 $ 119,986 $ 126,000 5.0% $ 6,014 Clbhse Furnish/Repair 35,416$ 56,342.86 $ 35,000 $ 30,000 -14.3% $ (5,000) Credit Card Expense 46,496$ 46,460.58 $ 49,000 $ 50,000 2.0% $ 1,000 In-State Travel - Maint.705$ 0.00 $ 450 $ 450 0.0% $ - Meetings/Travel-Maint 858$ 1,403.91 $ 3,000 $ 2,000 -33.3% $ (1,000) Meetings/Travel-Admin 199$ 536.59 $ 500 $ 500 0.0% $ - Dues/Subscripts - Maint 1,356$ 2,525.00 $ 1,520 $ 1,520 0.0% $ - Dues/Subscripts-Admin 2,255$ 2,518.00 $ 2,300 $ 2,300 0.0% $ - Adverts/Markt/Promo 67,173$ 31,373.53 $ 40,000 $ 35,000 -12.5% $ (5,000) Pro Shop Purchases -$ 234,836.45 $ 230,000 $ 230,000 0.0% $ - Reserve for Unforseen Exp.-$ $ 50,000 $ - -100.0% $ (50,000) SUB TOTAL 934,568.00 1,147,697.10 $1,196,506 $1,134,920 $0 -5.1% $ (61,586) total operating budget 2,232,707.00 2,484,173.76 2,578,538.00 2,582,073.00 0.00 -0.44% Golf 2/25/2019 SPECIAL REVENUE FUND FY2018 FY2019 GOLF DEPARTMENT - MGL Chapter 40 S 5F FY2017 DEPT HEAD TOWN ADMINISTRATOR % CHANGE YR / YR $ CHANGE YR / YR EXPENDED EXPENDED APPROPRIATED REQUEST #1 RECOMMENDED FY2020 DEBT SERVICE EXPENSE Principal 820,000.00 $ 735,000 $ 770,000 4.8% $ 35,000 Interest 96,277.00 $ 60,200 $ 30,800 -48.8% $ (29,400) ST to LT Principal 0.00 $ 40,000 $ 40,000 0.0% $ - ST to LT Interest 0.00 $ 1,077 $ 1,038 -3.6% $ (39) Issuance Costs 550.00 $ 700 $ 700 0.0% $ - SUB TOTAL 0.00 916,827.00 $ 836,977 $ 842,538 $ - 0.7% $ 5,561 FRINGE BENEFITS Unemployment 52,517.99 $ 60,000 $ 54,000 -10.0% $ (6,000) Group Insurance 237,122.75 $ 213,617 $ 244,317 14.4% $ 30,700 Life Insurance 555.58 $ 700 $ 591 -15.6% $ (109) Medicare 17,302.00 $ 20,700 $ 21,500 3.9% $ 800 Sick Leave Incentive Retirement 201,525.56 $ 214,773 $ 216,628 0.9% $ 1,855 SUB TOTAL 0.00 509,023.88 $ 509,790 $ 537,036 $ - 5.3% $ 27,246 GENERAL INSURANCE Workers Compensation 15,804.00 $ 17,384 $ 20,000 15.0% $ 2,616 General Liability 18,459.00 $ 17,384 $ 72,000 314.2% $ 54,616 Claims 0.00 $ 25,231 -100.0% $ (25,231) SUB TOTAL 0.00 34,263.00 $ 59,999 $ 92,000 $ - 53.3% $ 32,001 CAPITAL EXPENSE Additional Equipment 0.00 $ - $ 35,000 $ - $ 35,000 Vehicles & Replacement Equip 183,068.28 $ 52,618 $ 50,000 -5.0% $ (2,618) Repair & Maintenance Project 0.00 $ - $ 55,000 $ 55,000 Replace Clubhouse Fire Alarm System $ 20,000 R&M Clubhouse Trim & Gutters $ 20,000 SUB TOTAL 0.00 183,068.28 $ 52,618 $ 180,000 $ - 242.1% $ 127,383 GRAND TOTAL 2,232,707.00 4,127,355.92 $4,037,922 4,233,647$ -$ 4.8% $ 195,726 Golf 2/25/2019 Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 Fax: (508) 896-8089 FY 20 BUDGET QUESTIONS DEPARTMENT: Golf 1. What are the differences between the FY19 and FY20 proposed budget?  FY 20 does not have any Golf Reserve Funds available to offset a deficit.  FY 20 proposes a decrease in Part-Time Admin Wages and Operating Expenses. 2. What are the reasons for any increases or decreases?  We have experienced lower electric bills as a result of work done regarding an energy audit.  We are reducing the Alarm-Clubhouse line item by $2,000 as we are proposing the installation of a new fire alarm system in FY20. The current system is a Simplex system and is proprietary. They have to travel from Rhode Island for any service and the costs are exorbitant.  Range Supplies are reduced by $2,000 as we are purchasing used range balls.  The increase in the Rubbish Removal line item is due to the fact that this line item was under funded in previous years for our portable toilet service. This requests reflects the accurate bid award.  The increase in the Riding Cart Lease line item is due to the fact that our cart lease expires on 12/31/2019. Half of FY 2020 would be impacted by the new lease agreement which is projected to be higher than our current lease.  The Clubhouse Furnishings and Repair line item is reduced as we do not have any repair projects planned.  We have also been able to reduce our advertising spending using more cost effective on- line and social media platforms.  The overall decreases have been proposed in order to reduce the FY 20 Golf budget deficit. 3. Are you adding/reducing any personnel or programs?  We are reducing rangers on the golf course. These are part-time positions. Office of: Select Board Town Administrator 4. What are your top budgeting priorities for FY20?  It is our goal to maintain our level of service and maintenance of the course even considering the cuts we are proposing. We believe we can accomplish this on a one year basis. 5. Are there any expenses that could be deferred? What would be the impact?  I would not recommend any further expenses be deferred. 6. Recap of revenues and their sources?  We are proposing a 2-year membership plan to be initiated in April 2020 to increase revenues in FY 2020. However this will decrease revenues in FY 2021. Please see the budget narrative for more details. 7. Are any pricing/fee changes proposed?  The golf cart fees are projected to increase by $1 per round beginning January 1, 2020. This is when we will receive our new golf cart fleet. There are approximately 13,000 cart rounds from January 1 – June 30.  No other fee increases are currently being contemplated. 8. If your budget was level funded what would be a few major impacts to your operations?  That would require further cuts to part-time staff that would impact customer service and further cuts in our larger maintenance line items that would negatively impact course conditions. 9. Are any revolving fund or receipts reserve changes proposed and for what reason?  None. The Captains Golf Course FY 2020 Budget Narrative Rev. 02/22/19 FY 2020 REVENUE & EXPENSE BUDGET PROJECTION Projected Projected Projected REVENUES: FY 2019 FY 2020 FY 2021 Season Passes $ 963,000 $1,043,000 $ 829,000 Golf Carts 675,378 688,000 710,000 Daily Green Fees 1,764,055 1,800,000 1,818,000 Driving Range 125,274 128,000 130,000 Pro Shop Gross Sales 288,530 300,000 303,000 Restaurant Rent 36,000 37,000 38,000 Short Term Loan Proceeds 0 180,000 0 Reserve Funds 96,679 0 0 Total Revenues $3,948,916 $4,176,000 $3,828,000 EXPENSES: Wages $1,371,595 $1,447,153 $1,500,000 Operating Expenses 853,589 904,920 915,000 Pro Shop Purchases 214,367 230,000 230,000 Fringe Benefits 527,752 537,036 562,838 Property, Liability & Work Comp Ins. 92,019 92,000 92,720 Town Hall Indirect Costs 0 0 100,000 Debt Service Principal 775,000 810,000 180,000 Debt Service Interest 61,977 32,538 5,400 Capital 52,617 180,000 200,000 Total Expenses $3,948,916 $4,233,647 $3,785,958 SURPLUS/(DEFICIT) $ 0 $ (57,647) $ 42,042 Community impacts: 1. Since the inception of the Captains Golf Course in 1985, the golf operation has contributed $5,445,536 in surpluses to the Town’s General Fund. These monies have been used to support various non-golf Town needs. Golf surpluses were generated through FY 2010. In 2010, the golf industry experienced a severe downturn and the golf operation was no longer able to return funds to the Town. The Captains Golf Course continued to be profitable, but the cash flow was no longer adequate to cover the annual principal payments on the debt service. Golf Reserves that had been generated over the years were used to cover any shortfalls. By the end of FY 2019, these Golf Reserve funds will have been exhausted. 2. The Captains Golf Course was cited in Horsley Witten Group’s Pleasant Bay Nitrogen Management Alternatives Analysis Report in regard to our reduction of N fertilizer over the last several years. The report states regarding the N fertilizer reduction “it is equivalent to a load reduction of 2,050 lbs N to Pleasant Bay, or the upgrade of 168 homes to an advanced WWTF.” This will save the Town millions in upfront capital costs. 3. Additional impacts of the Captains Golf Course to the community are: a positive draw for the Brewster real estate market and business community by attracting new home buyers and tourists to the area; provides affordable recreation to Brewster residents; supports local charity endeavors including Lower Cape Outreach, Brewster Elementary Schools, Nauset Regional Schools, Brewster Police Relief Association, Cape Cod Regional Technical School, Cape Cod Hospital, and many more; provides employment opportunities to area residents who in turn support the local economy; as well as being a good steward of the land and reducing development. In addition, the Captains Golf Course is the home course and provides free golf to the Nauset Regional High School boys and girls golf teams. FY 2020 Budget Overview: Revenues 1. Season Passes are based on the number of season pass holders in 2018. Season Pass rates have been increased each of the last three years and this projection does not anticipate another rate increase in 2020. However, in order to meet our obligations for the FY 2020 budget, we are proposing implementation of a plan to offer a 2-year membership option (April 1, 2020 – March 31, 2022). This would allow us to collect revenues that would have occurred in FY 2021 forward into FY 2020. This is estimated to bring in an additional $80,000 in FY 2020. It is estimated to reduce our revenues in FY 2021 by approximately $130,000, but we will have no debt service to cover in FY 2021. 2. Golf Cart revenues are based on the usage over the past year. However, we are projecting a $1 rate increase for golf carts in 2020. 3. Daily Green Fees are projected higher based on several factors. We did implement a rate increase this year that is projected to increase green revenues by approximately $35,000. 4. We are projecting slight increases in Driving Range and Pro Shop revenues and the Restaurant Rent is based on our current contract with The Freemans Grill. Expenses 1. Wages include significant reductions in part-time staffing, mainly in rangers on the golf course. In addition, the minimum wage increase is factored in to our Part-Time wage line item. No positions are being added. Full-time wages are projected in accordance with current union contracts. 2. Operating Expenses are reduced by $11,586 as compared to our FY 2019 appropriation, a 1.26% decrease. 3. Combining our Wages and Operating Expenses, our FY 2020 budget request represents a 2.38% increase over our FY 2019 appropriation. 4. We are projecting a slight increase in Pro Shop purchases for FY 2020. 5. The Fringe Benefits line item includes: Unemployment; Health Insurance; Life Insurance; Medicare; and Retirement Costs. 6. The Debt Service line items include the $10M bond ($800,800 annual P & I) to construct the new course and a short term borrowing ($41,038 annual P & I) course improvement loan. Both of these will be paid off in full in FY 2020. 7. The Capital line item is for: Irrigation Pump #2 restoration ($50,000); Bed-Knife Grinder equipment replacement ($45,000); Pickup truck replacement ($45,000); Clubhouse fire alarm system replacement ($20,000); and Clubhouse trim and gutter replacement ($20,000). Our plan is to do a short term borrowing of $180,000 for these items. We plan to pay this off in full in FY 2021. Future Years: 1. All debt will be retired in FY 2020 (with the exception of the $180,000 short term borrowing for Capital outlined above). This will reduce our cash flow burden by about $840,000 per year. 2. In FY 2021, the Golf Department is scheduled to begin paying a fee to the Town to cover various “Indirect Costs”. This fee is projected at $100,000 in FY 2021. 3. We have deferred many Capital projects over the last several years due to our Cash Flow constraints. We will be developing a Capital Plan to address these needs. This plan will be managed to be paid for from Cash Flow generated through Golf Revenues. The projects that we will be planning for include: sink hole repair; cart path repair; maintenance building upgrades; irrigation system replacement; clubhouse HVAC replacement; clubhouse carpeting; clubhouse roof replacement; clubhouse painting; kitchen equipment replacement; as well as a maintenance equipment replacement plan. 4. It will be our goal to build up a Golf Reserve Fund to approximately $500,000 and maintain that for any unforeseen emergencies.