by Clifford F. Dobler

For the seven years from 2016 to 2022, the two Golf Courses had combined operating losses on average of $572,525 each year which was covered by profits from Diamond Peak. In addition $1,046,118 each year on average was spent on capital improvements and were covered by a portion of the Facility Fees assessed annually to all property owners.  (Source: annual CAFRs)[1]

 The Board of Trustees realized that a review of the pricing policies should be established and Moss Adams, a regional CPA firm, on March 4, 2021, was issued a contract to determine the best method for recovering expenses and costs, abandoning the limited existing board policy and creating a new policy.

In November 2021,  a framework for a District Pricing Policy was presented to the Board suggesting  rates for Picture Pass Holders to recover 100% of Operating Costs, for Guests to recover direct costs of services, and for Non Residents 100% to recover the full costs of services.  Any costs for capital improvements and debt service not recovered from Non Residents would be recovered by the annual Facility Fee.

Unfortunately the costs structures were not defined, nor how profits or losses from Food and Beverage, Merchandise Sales, Club rentals, Driving range fees, and Lessons were to be incorporated into the overall pricing policies. In addition, the Moss Adams report was never released to the public.

On January 26, 2022, a pricing policy was presented to the Board, however was not approved. Many changes were suggested by Trustee Schmitz in order to clean up grammar and provide more clarity.  On March 1, 2022 the revised policy was approved by the Trustees.

On March 30, 2022, golf rates were established for the upcoming season, however, did not meet the requirement of the new pricing policy to recover costs.

 In December 2022, the golf staff provided data on the 2022 Golf season which did not correlate to the fiscal year. As such it was difficult, if not impossible, to draw any conclusions on performance. Noted was the fact that the pricing policy had not been achieved . As such, until the final audited financial statements were completed, was it reported that the losses for fiscal year 2022 were the highest over the past seven years. The largest operating loss was from the Mountain Course registering a staggering $515,000 almost double the average of the other six years.  (Source: annual CAFRs)[2]

In March 2023, rates for the upcoming 2023 season was presented to the Board. Several proposed changes to increase revenues were suggested, however did  not meet the new board policy .  The Board decided that a more comprehensive review of all revenue elements of the golf venues were needed. Two weeks later, the staff suggested various percentage rate increases allowing the Board to decide what they wanted. This was contrary to the Board’s direction for staff to provide since Board members were seeking staff recommendations to run the business.  Also the Board was seeking a complete review of all revenue items not only golf rates.  Other items were to delete discounts from 2PM to 4PM, increases in range fees, increasing tee starting times by reducing intervals to 10 minutes.

On April 5, 2023, the IVGID staff brought another batch of recommendations to revise Golf Play Passes, eliminating  All You Can Play Passes, Couples Passes, assure that Picture Pass holders golf rates would never fall below Non Resident rates, Increase rates from a minimum of 5% to 11%, eliminate Pre-Book fees, discuss allotment of prime tee times and weekends to Golf Clubs, keep Non Profit rates as same level as previous years and increase range rates by $1.  At this state, Trustee Tulloch wanted to clarify that all of the proposals were from IVGID staff not the Board of Trustees. Nothing was accomplished other than selecting Trustee Schmitz to assist staff with refining the financial material.

On May 8, 2023, an explosion of public comments poured in regarding the golf courses.  It was discovered that the Championship Golf Course Food and Beverage operations had consistent operating losses of $33K in fiscal 2021[3], 161K in 2022 and projected loss in 2023 of 136K. These losses were never discussed and had a major impact on future golf rates. The budget for 2024 is highly suspect and is expected to generate a 35K profit by a major increase in revenues.[4]  Trustee Tulloch has asked that a weekly report on sales be conducted. Trustee Schmitz along with Director of Finance Navazio prepared a analysis of closing the “gap” between revenues and operational expenses.  Most Trustees now agree that a portion of the annual Facility Fee will be needed for capital improvements if not covered by nonresident rates.

[5]A synopsis of the May 8, 2023 meeting  reporting final decisions can be found here:

HTTPS://mailchi.mp/golfincline/botsynopsismay8th2023

Throughout the various meeting listed above, not one single word was mentioned about selling the golf courses, privatizing the golf courses or outsourcing the existing management. It is my conclusion that too many changes to pricing were discussed leaving the golf club members and other residents in an array of confusion. This should be avoided in the future.  

Throughout this entire process, operating expenses for fiscal 2024 were never examined which is somewhat disturbing, as increases over 2023 are projected at $616,000 or a 16% increase which is much higher than inflation.