Oro Valley Councilmember Mike Zinkin at the September 2 regular Town Council meeting, requested to see the monthly revenues and expenses from the food and beverage operations managed by Troon at the Oro Valley Community and Recreation Center. That report, issued on Monday, is more evidence that the purchase of the El Conquistador Country was a “disaster,” according to Zinkin.
The report contains the consolidated July financials for the Community Center & Golf Fund. The El Conquistador Country, which is now the Oro Valley Community and Recreation Center, was purchased by the Town in a quick and secretive deal that spurred a recall effort of the Town’s Mayor Satish Hiremath, Vice-Mayr Lou Waters, and Councilmembers Joe Horant and Mary Snider.
The report reads:
Attachment 1 is the financial report for the Community Center and Golf Fund showing the consolidated summary of all operations at the Community & Recreation Center. Total actual revenues for the Troon-managed operations were $178,664 for the month, while total actual revenues for the Town-managed operations were $42,722 for the month. The half-cent sales tax collections for July were $130,032 for total overall revenues in the fund of $351,418.
View Troon July Financials here
Also attached to this report is the July income statement (Attachment 2) prepared by Troon for the food and beverage operations at the Community & Recreation Center. More specifically, this attachment includes revenues and expenses associated with the La Vista Restaurant, the Garden Café, banquet and catering activities and beverage cart operations for the month of July. Total revenues were $34,002 and total expenses were $71,043 for a net loss of $37,041. While revenues exceeded budget by $1,380, or 4%, expenses were higher than budget due primarily to 4th of July holiday pay, increased overtime due to staff vacancies and cost of sales for food.
Total actual expenditures for the Troon-managed operations were $581,791, while total actual expenditures for the Town-managed operations were $35,494. Troon-managed operations generated a net loss for the month of $403,127, while Town-managed operations generated a net surplus of $7,228 for the month.
Some of the factors that contributed to the net loss in the Troon-managed operations were as follows:
- Loss of a large golf tournament that El Conquistador hosted in July 2014, which went to Omni Tucson National this year. Troon is working toward recruiting this tournament back to our course for 2016.
- Due to timing of aerification, Troon only had all courses open for six days in July.
- Merchandise sales were down significantly due to aggressive markdowns and movement to reduce inventory.
- Golf dues memberships were down due to the loss of 60+ golf members at the beginning of the summer due to the initiation fee being dropped under Town ownership. Staff feels strongly that many of these members will return in the fall and begin new memberships.
- Utility expenses were higher than anticipated due to lack of monsoon rains and the need to pump more water for irrigating the course.
The Troon-managed operations line item detail is also included as Attachment 3.
