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Golf's decline proving costly for Phoenix As sport loses luster, Phoenix's courses face $14.8 mil deficit by Emily Gersema - Sept. 4, 2012 10:20 PM The Republic | azcentral.com Phoenix's golf program is stuck in a virtual sand trap with its six golf courses having accumulated a $14.8 million deficit, a new report shows. Phoenix has lost its swing for a number of reasons. The city report on the golf program blamed the diminishing popularity of golf nationwide, with a growing number of golf courses as well as the slow economy, which increased the golf program's average annual deficit nearly 11/2 times to $2.4 million a year. The National Golf Foundation reported a decline in the average number of rounds played in Phoenix between 1990 and 2010. The drop in the number of rounds occurred at the same time the number of golf courses increased in Maricopa County during that period from 153 courses to 214. In effect, the city -- and nation -- have an oversupply of golf courses but not enough demand, according to National Golf Foundation studies. The City Council in 1981 set up "Phoenix Golf" to operate as a revenue-sustained enterprise without support from the city's general fund. Under Phoenix Golf, the city owns Encanto, Maryvale, Papago, Palo Verde, Cave Creek and Aguila golf courses, located in various areas of the city. Since 1999, Phoenix has had to cover the cost of operating and maintaining the courses with money from the city's general fund -- the taxpayer-supported fund that covers the bulk of the city's costs such as employee salaries and services such as trash pickup. "From a long-term perspective, we have to pay back the general fund," said Phoenix's finance chief Jeff DeWitt. "We need to come up with a solution." The city is working on a plan for the golf program to repay the city that will determine whether the city continues operating a few, all or none of its golf courses. "It comes down to a policy question," said Phoenix Budget and Research Director Mario Paniagua. "Do we look at treating golf more like some of the other parks and recreation programs?" To swim and play softball, users pay fees, which don't cover the cost of operating and maintaining the pools and ballfields. The city subsidizes those facilities and operations. An 11-member ad hoc committee under the Parks and Recreation Board is tasked with answering whether the city should turn golf into one of those programs. In the coming weeks, the committee will host a series of public meetings at which officials hope golfers and residents will offer ideas to close the deficit or at least curtail it. The city's proposed solutions, which could include any combination of these ideas, are: • Outsource the course pro shops where golfers can buy equipment to increase revenue. • Close the courses from July to September when golf is slowest. • Cut the course hours from 14 hours a day to 10 hours a day to save $107,000 for the year. • Hire contractors to maintain the courses for an annual savings of an estimated $656,000. • Privatize some or all of the courses, with the city reimbursing the contractors for maintenance and operations. • Convert some or all of the courses into public parks, which could also cost money, depending on whether the city would have to install fencing. Phoenix green fees in summer are $16 for 18 holes of golf, and go up to $43 for 18 holes in winter. With a deficit though, "price is not a solution" for competitive reasons, said Susan Robustelli, a Phoenix budget-and-research management assistant. She said many of the 214 golf courses in Maricopa County participate in golfnow.com -- an Internet pricing program that works like Travelocity and other online travel-booking companies. Golfers use golfnow.com to shop for the lowest golf prices and book their tee times. |