Eagle Pass Golf Course costs taxpayers $212,560, Golf Association delinquent on monthly payments to City
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016
The Eagle Pass City Council tackled the perennial controversial issue on the high costs of operating and maintaining the Eagle Pass Golf Course, a nine hole course on the banks of the Rio Grande River between the two City-owned International Bridges, at their special meeting held on Tuesday, May 17, 2016, reflecting a City taxpayers subsidy of $212,560 during 2015-2016 fiscal year.
Eagle Pass City Council members and taxpayers are getting teed-off with the fact that the Eagle Pass Golf Course is not making enough revenues to pay for itself and costing taxpayers the hefty sum of $212,560 to operate and maintain during 2015-2016 fiscal year.
To add insult to injury, Eagle Pass City Council members are upset that the Eagle Pass Golf Association, a non-profit organization whom the City leases the Golf Course to, is three months delinquent in its $3,500 monthly payments to the City of Eagle Pass for use and management of the municipal golf course. The Eagle Pass Golf Association is currently $10,500 delinquent in monthly payments to the City of Eagle Pass.
For many years, the City of Eagle Pass has funded the municipal golf course from taxpayer monies as a tourist and economic development attraction and necessity while leasing it to a non-profit organization. The Eagle Pass Golf Course annually loses money and is a financial burden to City taxpayers.
This past year, the City of Eagle Pass spent over $400,000 to build a miniature golf course (putt-putt golf course) on the site of the municipal golf course. However, due to its location and lack of promotion, the miniature golf course is seldom used and is heading the same route as the regular golf course of becoming a financial burden to City taxpayers.
In light of exceedingly high tax appraisals and tight public financial resources, money-losing programs such as the Eagle Pass Golf Course are fair game for re-evaluation by the City Council and taxpayers.
During the May 17, 2016 meeting, City Council member Gloria E. Hernandez raised the dilemma of the Eagle Pass Golf Course costs and delinquency with Interim City Manager Roberto Gonzalez.
Hernandez expressed her concerns over the golf course issue, specifically the management of the golf course and certain services by the Golf Association and its delinquent obligations to the City under an agreement that are not being met.
“You’ve heard some horror stories.”stated Interim City Manager Roberto Gonzalez
“Since I’ve been on the Council, I haven’t seen any fees coming in to the coffers of the City and I have a problem with that.” said Hernandez.
“We’re trying to clarify it and that’s why I’m giving you all this history so we can know the whole thing. The Association does not manage the golf course , the City manages the golf course. The Association only manages the clubhouse and the canopy.” said Roberto Gonzalez.
“Does the City get the fees for the memberships?” asked Hernandez.
“The association pays $3,500 a month.” answered Gonzalez.
“Are we (City) getting them?’ asked Hernandez. “Yes.” answered Gonzalez
“They are three (3) months behind, we discussed that yesterday.” Replied Gonzalez.
In other words, the Golf Association owes the City of Eagle Pass taxpayers $10,500 for those three months of delinquency.
The Golf Association charges between $250 to $500 on a one time induction into the association membership and $60 a month in membership fees. It is estimated that they’re 125 golf association memberships at present time, generating $7,500 in membership dues on a monthly basis not including other fees for the use of the golf course by non-members and revenues from the operation of the canopy and clubhouse. The Golf Association sells beverages, refreshments, food, and other items at the clubhouse to its members and visitors.
“ Now, let me tell you what can happen. Two things can happen, its very simple. Its not a lot of math to this, either we come to an agreement where we up the monthly rent or we take over the golf course.” said Roberto Gonzalez.
“We’ve heard this for several months already and its about time that we get a direction of what we’re going to do.” said Gloria Hernandez.
“ I will tell you very honestly, I don’t know how long I’m going to be here but if I were to stay I would definitely tell you , don’t do it. Don’t take over , because it’s not easy to make money from golf courses.”answered Gonzalez.
“Obviously , we’re not , either way. We’re not even getting our expenses, so maybe there’s a third alternative” said Hernandez.
Gonzalez then stated “The third alternative would be to lease it out.”
“Or shut it down.” replied Hernandez.
“That could be.” answered Gonzalez.
Gonzalez and Hernandez then proceeded to have a healthy discussion over such alternatives.
“You have to keep in mind that as communities grow, you have to afford amenities.” said Gonzalez.
Gonzalez then gave an example of another City amenity, the public swimming pool.
“Well the swimming pool doesn’t make any money , oh well let’s shut it down. You can’t, things don’t work like that. They don’t.” answered Gonzalez.
“Well sometimes they do depending on what percentage of the community is being served.”rebutted Hernandez.
Hernandez is referring to the actual number of people that actually use such facilities and services provided by tax dollars that would justify the expenditure from the city annual budget which is funded by the taxpayer.
“We can have that discussion at a later date.” said Hernandez.
“I think what we need to do is go ahead and meet with the association, see what alternatives and we can come up with options.” said Gonzalez.
Eagle Pass Mayor Ramsey E. Cantu then stated that part of the issue that has held back any action in the Golf associations part has been the inability of them being able to meet due to lack of quorums to address such issues as the contract with the city to proceed and move forward.
“By no means do I think the city has been lagging to finalize this . I think we have been pro-active. Just as we see that their needs for increases for the School district to utilize the golf course, the same thing comes for the golf association to pay their fair share. We’re looking at increases to cover these costs, we just need to make sure that everyone is seeing an increase across the board for those fees that are out there.” said Cantu.
Hernandez then stated that such actions were begun and set but that continuing with those actions is important to address the issue.
“I don’t see their part (golf association).” added Hernandez.
“You’re absolutely correct.” answered Gonzalez.
Mayor Cantu stated that it was vital to address the issue to finalize an agreement and if not that the city needed to move forward and find a solution to the problem.
“If they don’t come up with an agreement , we need to move forward and they will have to obviously come to terms with whatever the council makes as a decision. If they’re not at the table now, then they are going to be the ones on the plate. Let’s just get it done.” concluded Mayor Cantu.
The City of Eagle Pass taxpayer forks up funding for the operation of the municipal golf course which under the 2015/2016 budget is $212,560.
The City’s Golf Course 2015/2016 proposed budget for this fiscal year is $212,560, a whopping 176.135 % increase from 2014/2015. The general fund expenditures by program for the 2015/2016 proposed budget shows $144,364 has been allocated/set aside for personnel , $53,131 for supplies and materials, and contracted services $14,700. There is no mention in the City 2015/2016 budget as to what amount of revenues are expected to come in as that part of the budget process is left blank as in other yearly budgets as well.
The City 2015 /2016 budget under general fund expenditures shows that in 2014/2015 the proposed budget was $76,977 but the actual amount is not stated or represented in the new 2015/2016 budget as the actual amount spent has been left blank.
The amount of revenue fees from the operation of the municipal golf course returned back to the tax payer from its initial investment were not available as of press time.
This revenue amount is important in determining the actual amount that the tax payers is having to really contribute to the operation of a golf course.
Another major concern was the true lack of foresight used in spending approximately $470,000 in taxpayer borrowed money to build a miniature golf course within the municipal golf course location.
“Why build such a thing if you should have the facts that the place has always lost money. That is a true irresponsibility of my tax monies in part of the city governmental entity.” said a local taxpayer. The miniature golf course is built in the wrong place and location as it is inaccessible to the general public and visitors. A more centrally located place would have been better for the public and visitors.
Other taxpayers question whether the City of Eagle Pass should have invested those $470,000 on other public needs such as street paving and public security measures.
The City Council will address the Eagle Pass Golf Course problems again at a future meeting.
