Black Gold Golf Club has some seeing red
Amid frequent barb throwing among City Council members with obvious political and personal differences, decision-making affecting Yorba Linda’s future is going forward.
In fact, the constant maneuvering between two factions to gain political advantage often results in more complete staff reports, sharper questioning of top management and more open and pointed discussions among council members.
For example, a 35-page, staff-prepared packet regarding the city-owned Black Gold Golf Club presented at a May 5 council session is the best analysis of Black Gold finance data ever made available in a public meeting.
The document, prepared by Parks and Recreation Director Sue Leto and Finance Director Susan Hartman, resulted from wrangling over a less-adequate report offered at a March 3 meeting
At issue are possible general fund subsidies for the 215-acre course, which is not meeting original revenue projections and needs expensive turf renovations to continue branding as a first-class facility.
Mayor Mark Schwing, a member of the council that started building the course a decade ago, noted that an anticipated $1 million profit per year, after bond payments, hasn’t yet been achieved.
Actually, Leto and Hartman are recommending the city advance $1,563,000 to cover renovations and revenue loss due to course closings during the repair period.
Full cost of converting the current rye grass to Hybrid Bermuda could approach $30,000 per acre or a total of $5.1 million, plus $2.5 million in lost revenues from closing.
Council has asked staff to present a more refined estimate of potential conversions costs and income losses at a June meeting, and John Anderson wants to know what the course might bring if sold.
Outstanding bonds and leases total $18,125,000, according to Hartman, and course management officials said the facility couldn’t sell for that in the current market.
Based on discussion May 5, Schwing, Jan Horton and Jim Winder favor the renovation proposal—“We have no choice,” Winder said—while Anderson and Nancy Rikel are opposed, without more information on cost containment, other revenue streams and a possible sale price.
Hybrid Bermuda is tolerant of poor soil conditions, resistant to pests and diseases and needs less water, a plus if water rates increase by an anticipated 40 percent in the next two years, according to city and water district officials.
A bright spot in golf course revenue involves the food and beverage operation, which has outperformed estimates by 215 percent or $923,694 beyond projections in the most recent fiscal year, noted Leto and Hartman.
In fact, the constant maneuvering between two factions to gain political advantage often results in more complete staff reports, sharper questioning of top management and more open and pointed discussions among council members.
For example, a 35-page, staff-prepared packet regarding the city-owned Black Gold Golf Club presented at a May 5 council session is the best analysis of Black Gold finance data ever made available in a public meeting.
The document, prepared by Parks and Recreation Director Sue Leto and Finance Director Susan Hartman, resulted from wrangling over a less-adequate report offered at a March 3 meeting
At issue are possible general fund subsidies for the 215-acre course, which is not meeting original revenue projections and needs expensive turf renovations to continue branding as a first-class facility.
Mayor Mark Schwing, a member of the council that started building the course a decade ago, noted that an anticipated $1 million profit per year, after bond payments, hasn’t yet been achieved.
Actually, Leto and Hartman are recommending the city advance $1,563,000 to cover renovations and revenue loss due to course closings during the repair period.
Full cost of converting the current rye grass to Hybrid Bermuda could approach $30,000 per acre or a total of $5.1 million, plus $2.5 million in lost revenues from closing.
Council has asked staff to present a more refined estimate of potential conversions costs and income losses at a June meeting, and John Anderson wants to know what the course might bring if sold.
Outstanding bonds and leases total $18,125,000, according to Hartman, and course management officials said the facility couldn’t sell for that in the current market.
Based on discussion May 5, Schwing, Jan Horton and Jim Winder favor the renovation proposal—“We have no choice,” Winder said—while Anderson and Nancy Rikel are opposed, without more information on cost containment, other revenue streams and a possible sale price.
Hybrid Bermuda is tolerant of poor soil conditions, resistant to pests and diseases and needs less water, a plus if water rates increase by an anticipated 40 percent in the next two years, according to city and water district officials.
A bright spot in golf course revenue involves the food and beverage operation, which has outperformed estimates by 215 percent or $923,694 beyond projections in the most recent fiscal year, noted Leto and Hartman.
posted by Jim Drummond at 12:00 PM
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