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    Economic struggles mean finding more fat to trim

    by John Reitman

    Managing shrinking budgets and the ensuing decisions of where and how to make concessions that do not compromise playing conditions have become entrenched among a golf course superintendent’s most valued skills.

    At a recent GCSAA chapter delegate meeting, Larry Balko, CGCS at municipal Park Ridge Golf Course near Lake Worth Florida, said those concerns were top of mind for virtually all in attendance. And why not?

    It is estimated that rounds played at Park Ridge, which is owned by Palm Beach County, will increase by as much as 17 percent this year, from 47,000 rounds in 2008 to a projected 55,000 rounds, said Balko, who is employed by ValleyCrest Golf Course Maintenance. Yet his budget heading into next year has contracted by about 5 percent.

    To account for that shortfall, Balko said he has been forced to skip some fertilizer applications in the rough areas, let some out-of-play areas go natural and replace annual ornamentals with perennials.

    “A few other things, but nothing too major,” Balko said. “I’ve been talking to some of my buddies around here, some private and some daily fee, and it seems I’m doing better than most of them.”

    Fortunately for his crew of 12, Balko said his only schedule adjustment has been to limit or eliminate overtime, but he has not lost any positions.

    “We have a contract (with the county),” he said. “We have to have so many people to take care of the golf course.”

    The story at Park Ridge is not unlike that at many golf courses today. North Oaks (Minn.) Golf Club still is feeling the positive effects of a 2007 Tom Lehman renovation that revitalized not only the 1950 Stan Thompson layout, but the club’s members as well.
    I’ve been talking to some of my buddies around here, some private and some daily fee, and it seems I’m doing better than most of them.”
    - Larry Balko, CGCS, Park Ridge Golf Course
    Play is up compared with last year, but membership at the mid-level private facility near Minneapolis is down marginally (currently less than 2 percent), so the club’s administration is approaching 2010 in a cautious manner, said Jack MacKenzie, CGCS.

    MacKenzie’s budget grew by nearly 12 percent from 2006 to 2007 in response to the renovation and by another 3 percent in 2008. Since then, it has been on the decline, dropping by 5 percent this year and nearly 8 percent heading into 2010.

    MacKenzie also will target such areas as labor and chemical expenses to make up some of those losses.

    Overtime has been limited and for the most part eliminated, and pay raises are a thing of the past for the second straight year.

    Likewise, MacKenzie changed his spoon-feeding fertility program from UMAXX to straight urea blended with HYDREXX. And beginning next year, he will send a worker out ahead of the mowers to pull all obstacles, flags, tee markers, etc., allowing mower operators to clean mow the course, saving time and money.

    MacKenzie has met those cutbacks the past two years by cutting back on ornamentals, using post-patent chemicals where possible. Likewise, going to the GIS has been eliminated from his budget for the second straight year.

    “It is an extravagance,” MacKenzie said of attending the Golf Industry Show. “And I would rather spend the coin on something the members would get a direct benefit from.”

    Newark Valley (N.Y.) Golf Club owner, operator and superintendent Cleve Cleveland, CGCS, said he is in a similar predicament. Play has been steady the past few years, but membership sales are down by 15 percent from 2007. He too is cautious in his approach to next year.
    ”It’s an extravagance. And I would rather spend the coin on something the members would get a direct benefit from.”
    - Jack MacKenzie, CGCS, North Oaks Golf Club
    For the second straight year, Cleveland has decided against any major equipment purchases – thanks to a weakened economy. He also has converted exclusively to generic chemicals and even skips a fairway fertilizer application.

    Although avoiding major purchases helps the bottom line at high-end private clubs and mom-and-pop daily fees, that decision also comes with a cost, Cleveland said. He anticipates more downtime for his equipment and higher costs associated with repairs.

    For a small operation like Newark Valley, the owner must agonize over every buying decision.

    “An owner/operator is essentially not paid until the season is over and all the current and anticipated bills have been paid,” Cleveland said. “Every dollar that is spent for maintenance and equipment represents a dollar that the owner will never see in the current period as take-home profits. The cost/benefit analysis is crucial in justifying an expenditure. Most owners budget backward. They determine the bottom line profit that justifies their time and investment and from that point try to apply a level of expenditures that can be sustained by the current and anticipated sales revenues.”






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