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Golf Course Financial Analysis

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A Golf Course & Club That Has Never Turned a Profit

This analysis shows how much each resident is required to pay as a part of their HOA dues to subsidize the Golf operations here at Colonial Heritage, regardless of whether they personally use the golf course amenities.

Based on detailed financial records from 2020-2024, every Colonial Heritage homeowner has contributed significantly to cover the consistent operational deficits of the golf course. These mandatory subsidies continue regardless of whether a resident ever sets foot on the golf course.

Five-Year Financial Impact (2020-2024)

During the past five years, the golf operations have accumulated a total deficit of $1,101,045. This translates to approximately $786 that each long-term resident has been required to pay through their HOA dues specifically for golf course subsidies, averaging about $157 per year.

The monthly subsidy has fluctuated over time:

  • 2020:   –> $21.91 per household monthly or $262.83 annually
  • 2021:    –> $8.87 per household monthly or $106.39 annually
  • 2022:   –> $14.03 per household monthly or $168.29 annually
  • 2023:   –> $13.01 per household monthly or $156.17 annually
  • 2024:   –> $7.70 per household monthly or $92.34 annually
  • 2025 Budget:   –> $12.00 per household monthly ($144.00 annually)
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Projected Twenty-Year Impact

While we only have verified financial data for five years, we can make reasonable projections about the twenty-year impact on homeowners:

If the golf course continues to operate with deficits similar to the recent five-year average (approximately $220,209 per year), the total 20-year deficit could reach approximately $4.4 million.

For homeowners:

  • A resident living in Colonial Heritage for 20 years could expect to pay approximately $3,144 in golf subsidies (based on the 5-year average of $786.02 × 4).
  • If the 2024 reduced subsidy level ($92.34 annually) were maintained, the 20-year cost would be approximately $1,847 per household.
  • If the 2025 budgeted amount ($144 annually) becomes the new baseline, the 20-year cost would be approximately $2,880 per household.
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Golf Operations Subsidy Per Household
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     Year      Annual Deficit    Monthly Per Household    Annual Per Household
2019 $(336,519) $23.02 $276.27
2020 $(414,401) $27.10 $325.18
2021 $(143,950)  $8.87 $106.39
2022 $(256,104) $14.76 $177.11
2023 $(232,374) $13.02 $156.17
TOTAL $(1,383,348) $17.15 $205.76

Key Observations:

  1. Non-golfers are subsidizing a recreational amenity they may never use, with a projected 20-year cost potentially exceeding $3,000 per household.
  2. The subsidy has decreased substantially from its 2020 high point, suggesting management efforts to improve operational efficiency.
  3. Despite improvements, the golf course has not achieved financial self-sufficiency in any of the years analyzed.
  4. If Association membership continues to grow, the per-household burden may decrease somewhat, though total subsidy requirements remain substantial.
  5. These calculations use year-end household counts; actual subsidies may vary slightly as household counts changed throughout each year.

This analysis illustrates the significant long-term financial commitment that Colonial Heritage homeowners make to maintain the golf amenity, regardless of personal usage patterns.

This P&L is based on the detailed supplemental information from the audited financial statements.

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What does the CH Golf Club Need? A:

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Click on the image above for more information on marketing the CH Golf Club.  It’s in your best interest to support this because it’s YOUR MONEY subsidizing the Golf Club presently.

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