Looks as if the rec board will be looking at possibly implementing some financial changes this upcoming year. Some changes were suggested in a memo to the rec board.
First, the operating loss for the golf course from April 2008 through 2008 was about $41,088.63 (excluding accrued bills or inventory, which may make the figure less).
The changes suggested:
1. Shut down the clubhouse for at least January/February, possibly December and part of March.
2. Increase membership 10%. This would increase revenue by $2744.
3. Increase green fees 10%. This would increase revenue by $1081.
4. Shed rental. Making sure everyone has paid.
5. Increase food and beverage sales. More members = more money
6. Salaries. Cutting 2008 salaries by 10% will save $8319.
7. Clubhouse maintenance.
8. Course maintenance. With 7 and 8, most of the maintenance work should be done, which saves the course money.
9. Equipment maintenance.
10. Beer. An increase or prices of 10% adds almost $3,000. If costs are reduced by just 5%, it saves $657.
11. Pop. Reducing cost by 10% saves $856.
12. Food. Reducing cost by 10% saves $5090.
13. Utilities. Reducing this by 10% saves $973.
Most of these items are conservative estimates. The total additional revenue or reduced expenses comes to $18,220. Deduct this from last year's operating loss leaves a projected operating loss of $22,869.
It is fair to ask who these numbers were obtained from and who wrote the memo. When specific numbers and a specific memo are referenced, it's important to site the source for credibility.
ReplyDeleteFrom my understanding those suggestions and figures came from a list made up by the Rec board itself. Maybe Al who is on the board can verify this.
ReplyDeleteThis list was put together by the city clerk. These are areas he saw that could be changed or improved. They are credible, and the board will look at these along with other areas in the coming weeks.
ReplyDeleteTo comment on a post from the interesting tidbits blog. The projected budget for 2009-2010 is around $200,000. This is just a projected budget, the board has not started to go through budget items yet. We will start looking at this in the near future.
Al
It looks like some good suggestions to me.
ReplyDeleteAlso I have thought of a few other things that could help cut costs and increase revenue. Whe I have more time I will post them. The big thing I think is to have someone responsible for collecting receiveables, and have a policy to follow. It's not an easy job but it can be done.
I agree, these all look like great suggestions. What I'm worried about is the almost $23,000 projected operating loss. As with everyone in Dayton, I really hope this number can be reduced.
ReplyDeleteThanks Al for the clarification. I am sure all on the blog appreciate it.
ReplyDelete