LIHU‘E — Recognizing a sense of urgency in tightening the county’s financial belt, the Cost Control Commission has ushered out a proposal that strives to make the Wailua Golf Course self-sufficient in four years. Meanwhile, the Kaua‘i County Council continues
LIHU‘E — Recognizing a sense of urgency in tightening the county’s financial belt, the Cost Control Commission has ushered out a proposal that strives to make the Wailua Golf Course self-sufficient in four years.
Meanwhile, the Kaua‘i County Council continues to reappropriate taxpayer dollars to cover the municipal course’s substantial shortfall. Most recently, the Budget and Finance Committee on Wednesday unanimously approved a $233,405 transfer from the General Fund to the Golf Fund.
Over the past six years, more than $4.12 million from the General Fund has been transferred to the Golf Fund to keep the course afloat financially, according to Councilman Tim Bynum.
In a 4-1 vote, the commission last week approved a recommendation to Mayor Bernard Carvalho Jr.’s administration that would accelerate a proposed fee hike schedule for the course. The measure is to be put in ordinance form and forwarded within 30 days to the Kaua‘i County Council for final approval.
Representatives from the golfing community testified that poor long-term county planning regarding the self-sustainability of the nationally acclaimed course lies at the root of the problem. Now government officials must decide the best route to get the course back on track.
“We have to keep them fiscally sound,” Bynum said in an interview Wednesday. “I want to make sure that our seniors on fixed incomes can play at Wailua like they always have. It’s a very high priority for the whole council.”
The councilman had some reservation over the push to make the course an enterprise fund — completely self-supporting.
But when asked if the recent taxpayer subsidies for the course — $753,091 in fiscal year 2009, $1.14 million in 2008 and $675,272 in 2007 — were “reasonable” amounts to be pulling from the General Fund, he said “probably not.”
“It is totally appropriate for us to look at the fee structure,” Bynum said.
Members of the golf community had signed off on a seven-year plan — a year in the works — that included significant fee increases every other year to make the course self-sufficient.
But the commission, noting its stated overall objective of helping the course break even within three to five years, amended the proposal at its Feb. 9 meeting at the Mo‘ikeha Building.
The commission voted to keep the proposed fee hikes, but recommended accelerating its implementation to four consecutive years by pulling out the alternating years when no increases were to be made.
Golfers voiced concerns over their ability to shoulder the costs in the shorter time frame.
Ron Holte, a member of the Kaua‘i Golf Association and president of a senior golf club that supported the original proposal, said there would be “a big impact on us.”
Commissioner Sandi Sterker speculated that there may be a period where the increases outpace those at other courses, causing the golfers to go elsewhere thereby skewing the projected revenues because less rounds would be played.
The budget for the course this year is $2.4 million, officials said.
Noting that the course faces an approximately $1 million deficit this year and that the ultimate decision-making power lies with the council, Commission Chair Tore Winstrom said it was key for the commission to keep the ball rolling forward.
A similar spirit inspired Commissioner Michelle Swartman to abandon her position that increasing fees over a six-year period would be more “palatable” to the golfers.
“Oh, what the hell. I’ll jump fence,” she said at the meeting.
Sterker helped form a majority for the same reason — a desire to get a proposal to the council sooner rather than later.
“I don’t want to see it sit another month with the commission,” Sterker said.
The change in positions was necessary to garner a four-vote majority of the seven-member commission. Two members were absent. Commissioner Lorna Nishimitsu cast the fourth vote in favor of recommending the amended proposal while Commissioner Nadine Nakamura held firm in her stance against the condensed time frame.
“This came from the golf community,” Nakamura said. “I want to respect that.”
The administration’s overall budget for next fiscal year is due to the council by March 13, Parks and Recreation Director Lenny Rapozo said.
The next Cost Control Commission meeting is March. 16.
Some wildcards, such as possible increases to cart and locker room fees, are still being hammered out, officials said.
More than 60 people attended an “informal meeting,” Jan. 29, at the War Memorial Convention Hall in Lihu‘e about the proposal. Information gathered there was to be used in the recommendation at the commission’s meeting.
The proposed increases, which impact non-residents significantly more than residents, are projected to generate $2.14 million in total revenue in the first year and $2.77 million annually after the fourth year of increases. These figures include an estimated $400,000 annually in concession revenues and nearly $150,000 annually from the driving range, county documents show.
The fee increase schedule varies by category and is based on the number of rounds in fiscal year 2008. It does not factor in possible diminished play due to the fee increases.
Under the proposal, monthly cards for seniors would jump in the first year from $26 to $40; residents would also pay more with a bump from $46 to $60.
The projected revenue from monthly cards in the first year — based on the 2008 numbers for cards sold (3,060 for seniors, 3,937 for residents) and rounds played (17,942 for seniors, 27,989 for residents) — is $122,400 for seniors and $236,220 for residents. Under the amended proposal, the increase schedule for monthly cards is $5 annually for the next four years.
Daily rates for seniors would jump to $12 a round in the first year; $15 a round for residents; $60 a round for non-residents; and $3 a round for juniors.
The proposed increases to the daily rates would generate a combined $789,711 in the first year. Again, the county bases this projected revenue on the number of rounds played in 2008 when non-residents played 10,797 rounds; residents, 8,462 rounds; juniors, 2,531 rounds; and seniors, 614 rounds, county documents show.
Under the condensed proposal, the fee increase schedule for daily rates proposes a $3 increase for seniors in year two, another $3 in year three and a $2 bump in year four. For residents, the daily rates would go up $3 in years two and three, and $4 in year four. Non-residents would face three $5 bumps per round annually.
The condensed four-year rate hike schedule proposes similar increases for weekends, holidays and twilight rounds.
The public will have another opportunity to comment on the proposal when it reaches the council agenda.
Staff writer Michael Levine contributed to this report.
