Golf Courses Bring In $187,000 More in Revenue in 2012
"We had a phenomenal 2012 season," Director of Public Services Lauren Wood told the city commission earlier this week during her 2012 Golf Report.
Last year was a good year for Birmingham's two golf courses.
"We had a phenomenal 2012 season," said Department of Public Services Director Lauren Wood, speaking to the Birmingham City Commission Monday about the Springdale Golf Course and Lincoln Hills Golf Course, both of which brought in more money last year.
According to the 2012 Golf Report, both courses brought in $187,000 more in revenue in 2012, a 21 percent jump over the 2011 season.
In addition, 54,236 rounds of golf were played during the 2012 season, which began during a warm March and extended through November. That's up from just over 42,000 rounds played in 2011.
At the end of the year, Wood said the golf courses brought in $1.07 million in revenue last year, resulting in an operating income of $31,458 for the 2012 season.
It's a big improvement from the year before. In 2011, the golf courses were running on an $126,000 operating deficit after combining revenues and expenditures. Along with revenue, the number of rounds played also dropped 11.72 percent in 2011.
Still, depreciation of the courses is a looming issue. According to the Golf Report, the value of the two courses depreciated by $115,000 this year. That means the golf courses reported a total loss of $93,654 in 2012.
Still, it is the smallest end-of-the-year loss since 2008. Last year, the courses ended up losing $253,815 after depreciation.
Beer and wine translates into higher food and drink sales in 2012
What made the golf courses so successful this year? Weather, food and drinks, Wood said.
"The weather worked both for us and against us," Wood says in her report. "The excellent weather in March through May kept us in the number one spot for overall rounds, as compared to the past 10 years."
"The 20 days of 90 degree-plus temperatures, including three above 100 degrees, hurt us in June and July," she added.
Adding more food and drink options to the clubhouse menus — as well as introducing beer and wine after the city received a liquor license last July — was also a success, Wood said.
Total food and beverage sales in 2012 were $37,772, up 34 percent from the year before. The food and alcohol also attracted more events to the courses, Wood said, boosting rounds played and revenue.
Also new to the golf courses this year: the city hired Jacky Brito to serve as the new golf operations and clubhouse manager.
"Overall, the 2012 season was a successful year with our new golf model being implemented and we are excited to build upon this platform as we move forward," Wood writes in her report.
Have you been playing more golf lately? What can the city do to make its golf courses more attractive to residents and non-residents?