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Tucson welfare program for golfers

  What are you going to do when our government masters don't obey their own laws and rules? Not much!!!

According to this article:

"[Tucson] City golf courses are supposed to be self-supporting. But they haven't brought in enough money to cover their own expenses since 2003, the city audit found"
But the royal rulers on the Tucson city council have done NOTHING to change this.

This Tucson golf course mess sounds a lot like the Social Security mess at the Federal level.

Social Security taxes are deposited into a special account that is reserved to pay Social Security benefits as they become due.

Of course the crooks in Congress order all the money in the Social Security account to be spent on other stuff, and there isn't any money in the account other then a bunch of IOU's from the other Federal agencies that spent the money.

Source

Money for roads, parks covering city's golf debts

Jamar Younger Arizona Daily Star

Sunday, May 6, 2012 12:00 am

The city's five golf courses have been losing money for most of the past decade, prompting city officials to divert money intended for street maintenance, parks and public safety to cover golf's losses.

As of Jan. 31, city golf courses had racked up an $8.2 million deficit, a city audit found.

Mike Hayes, deputy director of Tucson City Golf, said city officials are hopeful golf's financial fortunes will turn around because the golf courses have seen improved revenues since January.

City golf courses are supposed to be self-supporting. But they haven't brought in enough money to cover their own expenses since 2003, the city audit found.

To make up the deficit, the city has transferred money from the general fund, which is taxpayer money used for road repairs, city parks, and Police and Fire Department services.

"Because it covers golf's cash deficits on a day-to-day basis, the general fund has millions less in funds available to meet potential other … needs," the audit says.

Over the past few years, the city has cut more than 1,000 jobs, withheld pay raises, ignored thousands of potholes and asked for community donations to open some swimming pools because it was so financially strapped.

Because of the nature of the golf fund, the audit says golf is supposed to pay interest on the money it borrows from the general fund - $24,345 for last year alone. But because golf continues to lose money, the audit notes that the unpaid interest is just accumulating along with the growing deficit.

The adopted budget for golf this year is $7.1 million.

City Council members say they want to avoid using general-fund money to pay for golf expenses.

"If we're subsidizing golf and people are driving through potholes to get to the golf course, that's a misallocation of priorities," said Councilman Steve Kozachik. "Our first responsibility is to protect core services, and that's police, fire, parks and roads."

Officials blame several factors for the decline in earnings at city golf courses - Randolph, Dell Urich, Silverbell, Fred Enke and El Rio:

• The economy contributed to a 35 percent dip in play over the past 10 years, from more than 299,000 rounds in 2001 to just more than 193,000 rounds last year.

• Three courses closed for a combined 28 months for renovations and other improvements.

El Rio closed in 2004 and again 2005 for renovations, reseeding and other improvements. Silverbell was shut down twice, in 2005 and 2006, for redesign, construction and reseeding.

In 2011, Randolph was closed for about 10 weeks, from July to September, so workers could replace grass that had been damaged months before in a hard freeze, Hayes said. The closures led to more expenses and a loss of revenue.

• Officials also blame about $2 million in debt the city took over from private contractors who operated the pro shops and provided individualized golf instruction at the courses until 2000. Last year, golf lost nearly $1.3 million, and debt payments accounted for $168,000 of that, Hayes said.

The city was already maintaining the courses and operating the concession stands, he said.

City officials have been attempting to reduce the deficit by cutting employees, privatizing golf lessons and concessions, and consolidating pro shop and clubhouse operations at each course, he said.

The employee positions were reduced from about 145 in the last fiscal year to 64 this year. About 20 of those positions were shifted to a concession contractor who took over that service in June 2011, he said.

But even after the cuts, the courses have continued to struggle. The audit report, dated March 7, says the audit committee "does not have evidence that a turn-around plan to deal with the chronic and increasing golf fund deficits has yet been developed."

City Council members have directed the City Manager's Office to think of more solutions to help stem the flow of money from the general fund. Recommendations are expected this month.

Items that have been discussed include higher greens fees and cart rental charges, higher pro shop prices, outsourcing more services and privatizing the golf courses entirely.

"We're definitely going to take a look at resident card fees and greens fees to get better cost recovery," said Councilman Paul Cunningham.

Cunningham said the city could examine its strategies on how to run golf tournaments and make changes.

The city could also sell some of the golf courses, although that options is limited because of deed restrictions on the land, federal funding for some of the courses and contract obligations.

Although the golf courses have been losing money, council members still see the positives in having city-owned golf courses, including providing outreach programs for kids.

However, city leaders say they don't want to provide golf at the expense of other services.

"If we're going to continue to lose money," Cunningham said, "we've got to draw the line."

Contact reporter Jamar Younger at jyounger@azstarnet.com or 573-4115.

 

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