Oro Valley has posted the May 2016 financials, and according to Town Councilman Mike Zinkin, “as expected and forecasted by some of us realists, the Town’s forecast for golf was off again. According to Zinkin, the total losses stand at $2,316,428 for fiscal year 15/16.
Troon, the Town’s golf management company, issues a monthly report. Troon shows a cash flow that indicates that Oro Valley citizens lost $169,427 in golf, food, tennis and swimming (not including the Aquatic Center), according to Zinkin.
The Town now expects to lose $2.4 million this fiscal year. “However, for that to happen, we would have to lose only $123,422 in June. This is not likely to happen since the average losses for March, April, and May were $147,655 per month,” Zinkin wrote in a message to constituents. “Losing just the average, our total losses will be $2,464,082.”
“The Overlook restaurant lost $22,814 in May bringing the total losses through May to $232,788. The Head Chef has submitted his two week notice,” reports Zinkin. “In the last 60 days, Troon has lost their Head Golf Professional, Head Groundskeeper, and now their Head Chef. Do you think they know something we don’t know?”
“What happened to the original forecast of $1.5 million in losses? In the past when asked of the Council, “When are we going to be concerned about these losses?” the response has been, “When the losses exceed the revenue being produced by the Sales Tax funding.” Well guess what……our losses are well above any sales tax revenue, in fact, our loses exceed the projected sales tax revenues by, at least, $900,000,” continued Zinkin.
“Councilmember Snider stated that this is a 5 – 6 year project. The candidates running against the incumbents agree that this is a five year project. This means that it is acceptable to expect to lose $14+ million. It is not realistic for Oro Valley citizens to assume these losses. The Troon Pro Forma for the next five years indicates that they expect to lose $1,534,505 in FY 2017 diminishing to $1,396,440 in FY 2021.” Zinkin concluded, “Their Pro Forma assumes a 3.5% growth, and golf membership levels just over 300 (we now have 262 members.) Based on the stunning inaccuracy of their forecast for FY 15/16, can we really trust their predictions?”