![]() ![]() ![]() Section 5: OPA Board Subject: OPA v OC Golf Msg# 1148410
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With little knowledge of municipal budgeting here are my comments:
Eagles Landing looks to have needed $607,300 of Town of Ocean City financial support to break even for fiscal year ending 6/30/2020 if you include $217,000 of capital outlays. Back out the $217,000 and you still get an operational loss of $390,300. For fiscal year ending 4/30/2020, Ocean Pines golf lost $160,000 on an operational basis. Covid affected both entities perhaps Eagles Landing more so because their fiscal year ended in June of 2020 while OP's ended in April. Eagles Landing had payroll expenses of $1,078,000 while Ocean Pines had only $646,500. Eagles Landing had total expenses excluding payroll of $973,200, Ocean Pines was $485,000. Rounds of golf for Eagles Landing is reported by calendar year not fiscal year. For calendar year 2020, Eagles reported about 27,500 rounds. I have information on Ocean Pines for the period May through October 2020 at 20,200 rounds. A rough estimate of 3,000 rounds for all of November through April gets you to 23,000 rounds. Looking at the respective 2021/2022 fiscal year budgets, Eagles Landing is a $2.3M operation, $2.0M if you back out indoor concessions while Ocean Pines is a $1.3M operation. At the risk of getting even more out my league, you could argue that for 2020, Eagles Landing spent a little over $2M to generate 27,500 rounds of golf while Ocean Pines spent a little over $1M to generate 23,000 rounds. That's a rough argument that OP may be more efficient per round but still one could ask why OP generates 16% fewer rounds of golf when both entities have one course. |
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For reference, the above message is a reply to a message where: Hi Marty. You have, if I recall correctly, often mentioned how Ocean City golf operations do much better than golf in Ocean Pines. I was just looking at budgets on the Ocean City website and reviewing their golf operations numbers. Based on numbers from their website, in 2020 the OC golf course lost about $370,000 on operations after consideration of shown capital expenses, if I read the document correctly. 2021 final numbers are not yet posted. "Town contribution" is shown as $607,301 but there is only $217,000 of "capital outlay." OC has about $1 million on greens fees while OPA has about $626,000 (including memberships). OC labor costs are about $1 million. OPA about $650,000. From a bottom-line standpoint, it looks like there is not all that much difference. Have you looked at those numbers recently? I do not see any item in the OC budget for "depreciation." Generally speaking, OC budgets for break-even. In this current OPA fiscal year, I am told the outlook is for a golf operational profit of about $50,000. |
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