Encinitas Ranch Golf Course Update – 2022 Financials

Posted on: March 2nd, 2023

At the close of each fiscal year, the JC Resorts Finance Department, with the assistance of the City of Encinitas Finance Department, develops and compiles the Encinitas Ranch Golf Authority’s (ERGA’s) financial information into the Annual Financial Report. ERGA contracts with an independent professional certified public accounting firm and is in their fourth year of the contract with Davis Farr LLC, to conduct an independent audit of ERGA’s financial records. ERGA’s Annual Financial Report includes Davis Farr’s professional opinion on the fairness of the presentation of ERGA’s financial position and results of operations for Fiscal Year 2021-22. The auditor issued an unmodified opinion on ERGA’s financial statements which is considered a “clean” audit. Below is a short summary of the Annual Financial Report Highlights:

  • The Golf Course had operating revenues of $7,017,279 for the fiscal year and operating expenses of $4,917,027 resulting in operating income of $2,100,252.
  • Golf Course revenue increased $505,746 more than FY 2020-21 revenues and rounds of play slightly decreased by 153 to 86,896 rounds. Operating expenses increased $278,549 more compared to expenses in FY2020-21. Operating income increased by $297,923 when compared to the previous year. The increase was due to an increase in rates of play and an increase in income from rental property. Golf activities normalized after the surge in golf play from the reopening after COVID-19.
  • The estimated excess golf course net revenue calculated per Board policy was $1,207,970, of which $306,445 was used to meet the operating reserve requirement and $901,525 was paid towards the Golf Course’s share of the Encinitas Community Facilities District special tax assessment for infrastructure – $339,470 towards the current assessment and $562,055 towards the five-year lookback period.
  • Cash basis reserves on June 30, 2022, was $3,238,722.
  • The Golf Course met or exceeded all of its debt covenants and requirements for the fiscal year, and the budget for Fiscal Year 2022-23 has been adopted to meet those requirements in the next fiscal year.

This is all very good news for homeowners in Encinitas Ranch as the golf course is doing extremely well. This means that the golf course is able to make all of the appropriate contributions to the Community Facilities District (CFD ) #1 bonds used to finance the infrastructure for the community, the golf course and the Encinitas Towne Center. In turn this translates into lower taxes for homeowners in CFD #1.

Additionally, the golf course was honored as the Public Golf Course of the Year for 2021 by the PGA for southern California as well as for the western United States. This is in recognition of strong management and focus on the golfer. 

To learn more about ERGA and the golf course more information can be found on the city website:

Encinitas Ranch Golf Authority