EXCELSIOR SPRINGS, Mo. – Recent comments on social media have raised questions about how the Excelsior Springs Golf Course is funded, whether residents are unknowingly paying for it through their taxes, and whether the course is operating at a profit. After reviewing public documents and speaking directly with City Manager Molly McGovern and Head Golf Pro Austin Hardison, the Excelsior Citizen has gathered the following information to help clarify the issue.
Tax Bill Confusion
A point of confusion began when a resident noted that her Ray County property tax statement included the phrase “Golf Hill.” According to McGovern, that label is simply the geographic designation Ray County uses for that subdivision. It does not indicate that any portion of a resident’s property tax is allocated to the golf course, nor does it represent a golf-course-specific tax.
How the Golf Course Is Funded
Unlike other city facilities, such as the Community Center, the Excelsior Springs Golf Course does not receive revenue from a dedicated tax. It operates almost entirely on the income it generates through green fees, memberships, cart rentals, restaurant sales, driving range use, and the pro shop.
The course’s revenue has grown substantially in recent years. In 2023, the course generated approximately $1.1 million. In 2024, that figure exceeded $1.5 million. Before that, annual revenues were below $800,000. This increase has strengthened the course’s financial position and allowed it to operate year-round without relying on borrowed funds during the winter months.
Minimum Cash Balance and Profitability
The course now maintains a required minimum cash balance of $250,000. This ensures it has the cash flow to get through the offseason, something the course struggled with in years past.
According to McGovern, the course has been profitable for the last several years and is continuing to trend upward. The profitability also allows the course to return money to the City’s general fund when it exceeds its minimum cash balance.
Why Capital Improvement Funds Are Used
Some residents questioned why the golf course receives money from the City’s capital improvements fund if it is profitable. McGovern explained that capital improvements are used to purchase major equipment and infrastructure for all city departments. Items such as mowers, pumps, and other large assets are capital expenses and are not paid out of operating budgets.
Hardison noted that the simplest way to understand the process is to view it as the City purchasing necessary equipment up front while the golf course repays the City over time through its profits. This structure prevents operational cash flow from being overwhelmed by the cost of major equipment upgrades.
Clubhouse Debt and the TIF District
Another concern involved the debt on the clubhouse. That debt is paid by the Tax Increment Financing (TIF) district attached to the surrounding subdivision. Property taxes collected within the subdivision, along with sales tax on clubhouse purchases, are used to retire the TIF debt. This financing structure does not involve citywide taxpayers and was established specifically so the clubhouse would pay for itself.
The Bottom Line
The Excelsior Springs Golf Course is not funded by a special tax, and residents are not paying additional property taxes to support it. The course has become profitable, its revenues have nearly doubled over the last few years, and it continues to maintain a strong cash position. Capital improvements used for major equipment purchases follow the same process established for every other city department, and the golf course repays the City from its profits.
Community members with additional questions are encouraged to reach out. The Excelsior Citizen will continue working with city officials to provide accurate, verifiable information on matters of public interest.
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