1/04/2006

Golf Woes

A local golfer has suggested that the City of Great Falls issue general obligation bonds to fund the recent remodeling work at the City golf courses. You will recall that these "debts helped push city golf operations into the red in recent years."

I guess I don't have a huge problem with such a proposal. Since they are, in fact, our assets, we have to maintain them. We cannot default on the debt, and the work is done.

Here's my problem, though. Before I will vote for a bond issue, I need to be convinced that "management" at the city has analyzed the problems and has adopted a comprehensive plan to address the problem. I will need to be convinced that such a plan is reasonable and, most important, is being realistically implemented. Finally, heads gotta roll. Someone needs to be held accountable for this mess, and I don't mean a month's probation, or pointing fingers at people who have since left. The people who were supposed to be minding the store out at the courses need to be gone, now. For good. No offense, but they can work in the private sector.

What I will not support, and what will tank such a proposal, is the typical city approach: "Well, we have a significant management problem, so we'll pass some bond issues to let the taxpayers pay for bad decisions in the past. Tomorrow's a new day, and everyone gets a raise."

Bullsh*t.

It sounds, too, like at least one Commissioner has a basic understanding of demand elasticity, although not in so many words. " 'We've got competition,' said Jovick-Kuntz, adding the city should not price itself out of the market." The fact is that a significant percentage of our regular golfers are cantakerous old guys. If we keep raising the rates, they'll stop golfing at the City courses. If that happens, revenue will continue to tank. I have an idea, try slashing the rates by 20% or more. Do it conditionally, then compare the revenue through July '06 with the corresponding period from last year. If it's up, leave rates down. If not, then raise them

3 comments:

Treasure State Jew said...

You know, in the real world businesses don't have the option of being bailed out. There is money in golf in Great Falls; if their wasn't, Gannon Ranch wouldn't have just sold.

We are asset rich and up to our neck in debt. Rather than pass off that debt to all of us, I have a radical suggestion; we should divest.

According to the study we all paid for, it is almost unprecedented for a city of our size to have two municipal courses. Selling a golf course would generate the funds to retire a great deal, if not all, of that debt.

A market obviously exists, as a golf course just sold last week near Great Falls. Therefore, I suggest that we sell a golf course. Whaddya think?

Anonymous said...

Well according to the ex mayor the "Loss" on the L&C thing was only seven tenths of one percent of the City Budget then why can't the City tighten it's belt a little and just pay it off and be done with it. Then lower the rates and let the play begin.

ZenPanda said...

I'm really not in favor of having to pay more taxes to cover this crap! The L&C thing was a total embarrassment and the "golf scandal" is really starting to irritate me.