Posted on 12/17/2008 8:40:41 AM PST by NormsRevenge
CARLSBAD — The Carlsbad City Council voted unanimously yesterday to cover the municipal golf course's $1.6 million deficit for 2009, saying it was too early to change the financial strategy for the year-old course.
Expenses for the course, The Crossings at Carlsbad, are expected to be $8 million versus $6.4 million in revenues.
The budget anticipates a drop in course play revenue to $3.2 million from $3.4 million because of the declining economy. The city's finance director, Lisa Irvine, said that the course's $2.5 million in food and beverage revenues for 2009 will be higher than the $2.3 million earned for 2008 because event demand for the clubhouse is high. The budget anticipates $718,000 in unitemized revenue.
Mark Tanner, a Carlsbad resident, questioned the budget figures and suggested that the council develop a new strategy.
“I really think we're going to have a tougher year than what's projected,” said Tanner, a Carlsbad schools trustee and former chief financial officer for the 2002 Winter Olympic Games and Pepsico International.
Tanner said he never agreed with the decision to build the $68 million course, but now that the city owns it the council must make it work for the city.
He suggested four options: Raise the fees, reduce management costs, change the course's use to something else or sell it.
“Sometimes when you make a wrong decision . . . you have to go back and change the decision,” Tanner said.
Mayor Bud Lewis recounted the decisions that led to the course's $68 million construction cost, including requirements by environmental resource agencies to establish habitat in half of the course's 400 acres.
The budget includes $510,000 for habitat and $1.1 million to pay down debt in 2009.
“The majority of the council looked at it as a futuristic approach,” Lewis said. “I think in the long run, beyond my life(time), this golf course will be a blessing to Carlsbad.”
Councilman Mark Packard said the council expected the course to break even after five to seven years, and then turn a profit. He said that may take longer with the recession.
“I think it would be way premature to walk away from it at this point,” Packard said.
FORE!
Mayor Bud Lewis recounted the decisions that led to the course's $68 million construction cost, including requirements by environmental resource agencies to establish habitat in half of the course's 400 acres.
The budget includes $510,000 for habitat and $1.1 million to pay down debt in 2009.
That must be one nice muni course. sounds like a lot of out of bounds and hazards tho.
They closed the police shooting range to open this municipal monstrosity.
“Mayor Bud Lewis recounted the decisions that led to the course’s $68 million construction cost, including requirements by environmental resource agencies to establish habitat in half of the course’s 400 acres.”
Screw the spotted owl or whatever creature the Sierra Club is forcing the golf club to protect. Savings; $510,000.
Bring in a management group to run the course and let them handle everything. Savings; Benefits from nepotism, health care for the relatives and other unneccesary expenses incurred when the city runs a recreational facility. Probably $750,000.
There’s almost 1.3 mil.
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