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Page 2 of 3 <br /> <br />Total rounds for Fiscal Year (FY) 2023/24 were 69,662, and total rounds of 68,500 are <br />projected for FY 2024/25. The FY 2024/25 budget was 68,070 rounds. Revenue generated by <br />golf rounds, tournaments, food and beverage, and banquets and events covers all golf course <br />maintenance, operation expenses, and operator agreement fees. Any remaining revenue is <br />allocated to the golf course capital projects fund. Callippe is an Enterprise Fund and should be <br />self-funded and not rely on support from the City’s General Fund. Starting FY 2024/25, staff <br />charged golf-course-related materials, supplies, and contractor invoices to this fund instead of <br />the City’s General Fund. For FY 2024/25, $21,000 has been spent. <br /> <br />Using the philosophy noted above, the staff and the operator, CourseCo, reviewed fees for <br />2025. Based on the projected increases in operating and capital costs, staff recommend a <br />$3.00 increase to all green fees for resident tee times and a $5.00 increase to all green fees <br />for non-resident tee times (Attachment 1). It is anticipated that the increases will result in <br />approximately $212,000 in additional revenue for FY 2025/26. <br /> <br />Resident green fees will have a flow-through rate of $1.75 per estimated 20,660 rounds for a <br />total of $43,000 for FY 2025/26. “Flow-through rate” is an industry term used to measure how <br />an actual rate is determined. For instance, a proposed increase of $3.00 for residents, which <br />makes up about 30% of the total rounds (or revenue), would result in a flow-through rate of <br />approximately 70% of $3.00 or $2.10. The non-resident proposed increase of $5.00 makes up <br />the remaining 70 percent of the total rounds, having a flow-through rate of $3.50. So, the <br />average of the two rates is $2.80. A recent review found that current rates in this area are <br />comparable to those of nearby courses, and these proposed increases keep Callippe <br />competitive with other nearby course rates. This report includes a competitive fee survey of <br />seven golf courses within our market niche (Attachment 2). <br /> <br />Additionally, staff recommend a $1.00 increase for cart and range ball fees starting July 1, <br />2025. The $1.00 cart increase will have a flow-through rate of approximately $0.70 per round, <br />equating to $46,840. It is also recommended to increase the range ball fees by $1.00. Current <br />range ball rates are $8.00 for a small bucket, $11.00 for a medium bucket, and $13.00 for a <br />large bucket. Increasing rates by $1.00 per size will have an anticipated flow-through rate of <br />approximately $0.70. In FY 2023/24, 12,720 buckets were sold, which equates to $8,904 in <br />increased fees. <br /> <br />For historical reference, cart, green, and range ball fees were last raised in 2023 by $1.00. <br /> <br />EQUITY AND SUSTAINABILITY <br />As a full-service municipality, the City provides a wide range of services and programs to meet <br />the needs of all community members, including the Callippe Golf Course. Implementing annual <br />fee increases supports the fiscal sustainability of the City's Golf Course enterprise fund. <br /> <br />OUTREACH <br />No outreach has been done in advance of this item. <br /> <br />STRATEGIC PLAN ALIGNMENT <br />This action advances the following Citywide strategy: <br /> <br />Page 7 of 29