CALIFORNIA CITY — The City Council assigned the problem of how to address the ever-growing deficit created by operating the Tierra del Sol Golf Course to a committee that will include representatives of those who use the course as well as members of city government.
The golf course, long considered an asset to the community, has been running in the red for several years and has accumulated a deficit of $2.9 million as of the end of this fiscal year, according to the staff report.
For this fiscal year alone, the projected deficit is $413,211, with the projected expenses of just over $586,000 exceeding the anticipated revenue of $173,600.
During the budget approval process, in December, the Council did not muster the required four-fifths vote to use reserve funds to cover the operating deficit for this year. Nor did the Council provide any direction to staff as to how to cover the current and outstanding deficits, according to the staff report.
In recent years, efforts have been made to cut operating expenses, such as reducing water usage, but the measures have not been sufficient to make up the difference. Additionally, repairs and updates are needed for the course and the clubhouse.
In addition to providing recreational activity for residents and visitors, the Tierra Del Sol Golf Course provides a backdrop for a housing development and a stop for migratory birds, drawing birders, as well as golfers.
Mayor Pro Tem Nick Lessenevitch said the first problem is that the golf course is considered an enterprise fund, which should be self-sufficient. However, as the deficit shows, it does not bring in enough revenues to cover its own costs.
“It has a source of income, but it’s not ever going to balance out what we expect an enterprise fund to do,” he said.
The golf course should be under the Parks and Recreation Department, as it is a recreation facility, he said. That way, it should be considered within the context of the entire Parks and Recreation budget.
One possible alternative may be to lease out the clubhouse and restaurant to someone who would rebuild and operate those amenities, Mayor Jeanie O’Laughlin said.
Council members wanted to ensure public input on what happens next with the golf course.
“The golf course is pretty integral to our community,” O’Laughlin said. “I think we need to be transparent about it.”
Members of the community may have ideas for alternatives for how to address the golf course’s problems.
The Council has had a golf committee, that has not met before, consisting of Lessenevitch and O’Laughlin.
The volunteer golf pro who is now serving the golf course and a representative of the Men’s Club, which has been long associated with Tierra del Sol should also be part of the committee discussions, along with Interim City Manager Anne Ambrose, Council members said.
A plan needs to be developed quickly, as the facility is still losing money while nothing new is being done, Councilmember Jim Creighton said.