TAYLOR ? The big challenge for the city?s two golf courses isn?t unique ? increase revenue, bring down costs and do so in an economy where recreational funds for everyone are dwindling by the minute.
On Monday, the golf course fund deficit plan was submitted for City Council approval, addressing a $652,221 deficit with a five-year projection. If approved, it will be submitted with an approved general fund deficit elimination plan to the state Treasury Department for approval.
If the Treasury Department is not satisfied with what is submitted by April 9, a recommendation to cut 25 percent of the city?s state aid will be put in place with other penalties also possible.
While Jeff Dobek ? the Golf, Parks and Recreation Director ? and the city have long known about the golf fund?s current assets-to-current liabilities deficit, the state overlooked it.
The Treasury Department hand-delivered a letter saying it ?inadvertently? left the fund off its first deficit elimination notice.
While the city?s overall plan is more difficult, dealing with an estimated $5 million deficit, growing revenue for Lakes of Taylor and Taylor Meadows golf clubs which, like many assets, is depreciating every year, also is no small feat.
?I won?t say we?re doing great, but we are making a positive impact,? Dobek said. ?We have a long way to go. My thrust is operating cash flow positive. That?s revenue in and revenue out.?
Dobek?s plan is the latest incarnation that started before he took over the courses in 2010. While he oversaw the previous plan, Dobek, a certified public account, drew up the latest plan with Dean Philo, outgoing director of budget and finance, in January.
Jenetta Kregel, director of budget and finance, said that Dobek?s plan is an improvement over the previous one.
?It?s a good plan; it?s a conservative plan,? she said. ?There are no wild guesses about ridiculous revenues. Jeff did a good job of being conservative.? Continued...
A big win for Dobek was getting the fund?s operating cash flow out of the red. In 2011, for the first time since 2007, the fund?s revenues minus expenditures was positive $97,400. In 2009, the amount was nearly negative-$305,000 and last year, negative-$120,000.
The golf fund no longer receives Tax Increment Finance Authority funds for improvements. In 2007, the city received $600,000, which brought the fund into positive numbers.
Another new wrinkle to deal with was ?Other Post-Employment Benefits costs,? which city employees receive upon retirement. The golf fund was now tasked with absorbing those costs, which amounts to about $180,000 a year.
Reducing costs like payroll down to about $1.1 million, down $181,509 from 2010 and almost $300,000 for the last two years, has been one of the department?s challenges.
Another is maintenance, which was $777,700 last year, which went up from $701,429.
Growing business by utilizing social media, networking and with an overall ramp-up in marketing and bringing more money in, is key, Dobek said.
?We need to increase play again,? Dobek said. ?It?s golf outings, weddings. We joined the (Southern Wayne County Regional) Chamber.
?We?re doing more weddings and networking.?
With both courses paid off, one idea is to sell the courses and their banquet facilities. The soft market however, is a major obstacle.
Dobek said a Green Oaks Township course that fell ?in-between? the caliber of Lakes of Taylor and Taylor Meadows recently sold for $750,000 in a bank sale. Continued...
?The courses are cash-flow flush,? he said. ?Everything is going to come back and they are all paid off.
?If you can hold your own through tough times ... a lot of these banks are sitting on golf courses.?
Contact Staff Writer David Komer at 1-734-246-0866 or dkomer@heritage.com. Follow him on Facebook and @DavidKomer_NH on Twitter.
Source: http://thenewsherald.com/articles/2012/03/23/news/doc4f6ce3922dac1719696931.txt
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