Can’t get a golf tee time?
Can’t get a tee time?
In the survey we conducted, several respondents complained that they could not get golf tee times. One resident suggested, “More available tee times for residents. i.e.: less shotgun starts. Letting players tee off on the back nine at championship in the morning. Another resident complained that it can be difficult for a single golfer to join a 2-or 3-some, even if they can be observed teeing off at the first hole, but a single player cannot book a tee time.
After examining the spreadsheets for tracking team play and tournaments created by the IVGID golf pro Nick Hollingworth, we can understand the concern. Based on 25,000 available rounds from May 18, 2023 to an anticipated close date of Oct 22, 2023, 32% of the rounds (8,203) were booked by clubs or tournament play. And that does not reflect how the prime-time slots (11 AM or earlier) have been already reserved. The percentage of prime time slots already taken is much higher than 32%.
IVGID does not charge a premium for these tee-times at prime time, or charge for the far-in-advance reservations. There are two employees which make combined $200K per year to run the tournaments for the clubs, charities, and outside guests.
The 6 clubs, about 600 or so members, locked up tee times back in February, 2023 (see below). These club members are getting quite a deal.
The Championship and Mountain courses are not a private golf courses. A typical private golf course limits its membership to about 300 members per 18-holes. The private member pays for their share of the golf expenses in exchange for privileges at the course. Every member of a private course could in theory play almost every day. For the Champ course, the cost per member would be around $9,238 based on 2022 expense levels.
So let’s make it 600 members (not 300) – which is about the number of members in the six clubs. The members are getting a $4,617 benefit but if buying an “unlimited pass”, they pay $3,260. That’s an estimated savings of $1,357. (Note: The benefit calculation is based on 2022 Championship Golf Course costs of $120.53 per round and 22,994 rounds played, divided by 600.)
Is this vote buying? Yes, in the eyes of one professional. Back in the 1980s, a PhD specializing in golf courses wrote about “buy votes golf” also known as “give-away-golf”. “Why do administrators make decisions in favor of give-away-golf? As mentioned above in at least some of the cases it has been to keep quiet and/or buy the vote of that vocal senior golfer.
These six golf clubs locked up tee times back in February, 2023. The documents were obtained via public records requests.
Other golf-related articles: Leaving green on the green – Champ course loses a million dollars. And our article: Why does IVGID pay golf fees for some voters?
The author, J. Gumz, is a long-time resident and property owner of Incline Village and a registered voter. Other contributors included Mike Abel and Cliff Dobler, both residents, property owners, voters and avid golfers.
I’ve been an incline resident and property owner for near 30 years. I’ve long marveled at the golfing communities ability to gain special considerations from IVGID. Perhaps it’s time for that to change.
Perhaps it is time for the Trustee’s to identify what expenses need to be covered by the annual recreation fee paid by property owners (yearly) vs. entrance fee’s paid by a user of a facility.
For example:
Perhaps the capital cost (the cost of building or acquiring the facility – including debt) should be covered by the Annual Recreation Fee. The operating cost (including overhead allocation etc.) should be covered by a charge to the user that covers costs plus whatever profit is desired as a return on the capital.
Clearly stating what the annual rec fee is used for (e.g. providing the venues by investing capital to build or buy venues) would be in line with all residents desire to have many recreational options and would help all understand that their Rec Fee does not maintain the options but rather provides them.
User fee’s to cover operating costs plus a profit would then focus users to understand the cost of golf, the beach, the rec center, Diamond Peak, etc.
With a separation of capital vs operating/profit revenue sources; punch cards might disappear and all would better be able to value their residency costs and their venue costs vs. the benefits.
Just a suggestion to encourage clarity and help those of us who want a variety of good recreational venues and are willing to spend capital to get them BUT do not want to subsidize the operations of such venues.
There has been no documentation regarding the calculation of the recreation fee for decades. But the problem runs deeper; expenditures have been improperly capitalized. This must be cleaned up – and it has not been. The Audit Committee is dealing with this issue now – the amount is over $9.6 million dollars – a restatement of financials for several years is probably needed.
The Moss Adams report, Jan 14, 2021, stated,
“The District has been capitalizing expenditures incurred in the development of master plans as well as costs incurred that do not relate to specific capital projects or that increase the service capacity of an existing capital asset This is not in compliance with established governmental accounting practices. In addition, the Board’s capitalization policies and practices are not sufficiently detai led to provide guidance on what types of costs should be considered for capitalization.”
By capitalizing expenditures, the financial picture is “rosier” than it actually is. And if residents are to pay capital expenses, their portion is higher than it should be.
Based on examining the available ledgers and reports, expenditures need to be better controlled – both capital and operating. From what we can observe, the budget and budgeting process currently provides no controls.