Golf and Cost…..In Search of a Solution

Golf and Cost are both four letter words; both cause a lot of frustration. And, the objective with each when keeping score is to drive them lower!

Significant progress was made on a December 5th Monday meeting of resident golfers and the Developer. Residents successfully negotiated to have the operating and maintenance of the two golf courses to be bid by outside professional golf course management companies. Additionally, golf fees were stabilized at the current 2005 level, along with some minor other changes. Hopefully, golf fees can remain at a reasonable level if the cost of golf operations can be brought under better control. Congratulations to the residents that played a part in bringing this about. But now the hard work begins—the selection of a professional golf management firm that can manage our golf courses for golfers on a breakeven basis.

A greater focus on Cost is in order…

Cost of SCTX total Golf operations in 2006 will approach $90,000 per hole. This is substantially higher than operations cost of the top Austin Municipal courses for which detailed data is available. Teravista, Cimarron Hills and Mill Creek each have lower operating costs per hole, according to representatives contacted. Maintenance cost of White Wing and Legacy Hills on a per hole basis are even greater than the renowned Pinehurst Country Club. See: www.nccbi.org/Golf/2003.Golf.Maintenance.htm

…And Losses need to be Addressed

Losses for Golf have been large and continue through 2009, according to the budget unanimously approved in November. Losses were projected remain with us, despite the very significant price increases previously planned for 2006. Cumulated projected losses, including current year, are estimated to approach $1million by 2009. Since 2003 through 2006, annual increases in expenses range from 7.2 to 8.8 percent, according to Audited financial reports and the 2006 budget plans. Clearly, these are the issues that a professional Golf management company will need to address while maintaining a pleasurable golfing environment.

The Future
If Golf Costs cannot be brought under control and losses eliminated for the current courses-White Wing and Legacy Hills- there is a real question why current residents [especially non-golfing residents] would want to take on a third, money losing golf course. While the Developer may want another golf course in order to market higher margin [profit] homes, perhaps a third course should be developed financially separate and apart from this Community Association. It could be privately operated by the Developer or Agent. Current residents, surely, do not want their Homeowner Assessments increased further to support ongoing losses of a third Golf Course!

Some have said, “Don’t fret”, the Developer picks up the short fall resulting from any golf or restaurant loss. Really? Then why are Resident Assessments going up?

Time For You To Be Heard

Many of the readers of the last newsletter are still asking what they could do. Perhaps now is the time to request that Assessments be frozen until golf and restaurants are managed on a breakeven basis!

You can Email/call/write:

Gary Newman, Gary.Newman@delwebb.com
Rob McDaniel, rob.mcdaniel@delwebb.com,
Mark Thomas, mark.thomas@pulte.com
Ira Dolich, idolich@aol.com
Frank Miller, terfra2@cox-internet.com,
Jerry Boynton jerboy@cox.net.

Let them know your concerns –it is time to challenge “costs” in order to avoid spiraling increases in fees and Assessments.

Let them know that since Golf Fees are frozen at the 2005 level, we strongly supports rolling back Resident Assessments to the January 2005 level until both Restaurants and Golf Operations are at breakeven.