The Reidy Creek Golf Course Fund is projected to end the year with a loss greater than anticipated.
The FY 2017/18 operating budget for the golf course was balanced with a transfer from the City’s General Fund of $105,150. Based on revenue and expenditure projections through year end, additional funding of about $70,000 is projected, council members learned.
At last week’s city council meeting, members heard that city staff continues to explore options with the contractor that operates the golf course, JC Resorts for changes to its business model to balance the losses.
Council member Olga Diaz and city staff and council member Mike Morasco and Mayor Sam Abed sparred over this problem, with Morasco and Abed arguing it would cost the city more to close it down since the city makes monthly bond payment.
Close it and they would still have to pay the bond, said City Manager Jeff Epp.
Diaz said, “The report always says the same thing. JC Resorts should be brought in to talk to us. What is our timeline for addressing the continuing losses? This is not sustainable, to keep losing money on this particular use.”
Assistant City Manager Jay Petrek said staff is working to address structural problems in the city’s agreement with J.C. Resorts.
Epp said, “Losses have been higher this last year because of flooding and the reluctance of golfers to cross Broadway to play. They are concerned about having to cross Broadway.
Mayor Abed said he wanted to squelch rumors that have said the city is planning on selling Reidy Creek to a developer. “We are not selling. We are looking into efficiencies.”
“It would be easy to close the course and walk away, but we’d still have the bond payment,” Epp said.
The city pays $350,000 a year in debt service.