CARLSBAD: Golf course facing a $1.6 million shortfall

Proposed budget among many items on City Council's Tuesday agenda

By BARBARA HENRY - Staff Writer | Sunday, December 14, 2008 6:07 PM PST ∞

CARLSBAD ---- Saying that the nation's economic woes are driving away golfers, the managers of the city's municipal golf course are asking for $1.6 million from the city's general reserve fund help cover expenses in the coming year.

A city report released last week states that "The Crossings has been negatively affected by the slow economy, especially in paid rounds and group golf events, which has affected greens fees revenue."

The Crossings at Carlsbad Golf Course is forecast to generate $6.4 million in revenue in 2009, but spend $7.3 million. That means there will be an operating loss of slightly more than $918,000, according to the report. In addition to that, the course has environmental habitat maintenance costs totalling about $514,000.

The City Council will consider covering the $1.6 million budgetary shortfall with general reserve fund money Tuesday when it considers the course's proposed 2009 budget. The council's meeting is set to start at 6 p.m. at City Hall, 1200 Carlsbad Village Drive.

The golf course, which occupies about 400 acres along the north side of Palomar Airport Road, has struggled financially since it opened in August 2007.

At the start of 2008, the course got a $900,000 bailout from the city's reserve accounts. Part of that money went for additional construction work around the course, including adding gutters to the clubhouse roof and putting more fencing around the course holes.

More construction work is required in the coming year, the report indicated. The course's proposed 2009 capital projects budget is $197,950. It includes $155,950 for course drainage projects as well as $30,000 for new landscaping around the course's waterfall feature and the seventh hole.

In addition to that, course managers hope to obtain new golf carts because of battery failure troubles with the ones the course began leasing in 2007. The cost of the new replacement fleet is $356,400, the staff report states.

The city owns the course, but has hired KemperSports Management to run it. Most of the course's revenue comes from golfer use fees as well as food and beverage sales.

In the coming year, course managers are forecasting that there will be about 50,550 paid rounds of golf played at the course. Budget forecasts for the current year had called for 59,000 rounds to be played.

Greens fees are not set to increase, the staff report indicated.

For a copy of the City Council's agenda and the associated city staff report, visit: http://www.carlsbadca.gov/chall/4councilmtg.html.