Greens fees and cart fees could be going up at city golf courses to help Tucson City Golf pay for itself.
The golf program owes the city general fund $8.5 million, interest free, and has racked up about $1.5 million in capital needs over the next five years due to deferred maintenance.
Last year, the city hired OB Sports to manage the golf operations and turn around the financial problems. The company has made improvements and the number of rounds played is up, but revenue per round is low.
On Dec. 15, the Tucson City Council will get an update on the city golf enterprise at its study session, which begins at noon, and could vote on the fee changes at its regular meeting, which begins at 5:30 p.m. at City Hall, 255 W. Alameda St.
The proposed fee changes simplify the rate schedule. The proposed structure includes 24 rates instead of the current 110 rates.
The proposed changes are to the maximum rates. Golfers pay different rates depending on factors such as golf course location; the time of year, day of the week and time of day; whether they are city residents; when they book; and whether they have any discounts.
The highest maximum rate, paid by non-residents in the spring at Randolph, would increase to $60, up from $56. The cheapest maximum rate, paid by residents in the summer at Fred Enke, would increase to $19, up from $18.
All cart fees would increase to $14 from $12.
Fees were last changed in 2009.
The Tucson Greens Committee, which advises the council on golf matters, approved the recommended changes in March.
βThe proposed maximum rates does not mean rates are going up, but provides OB Sports the ability to charge higher rates when the market will allow it,β the group said in a memo. βIf Tucson City Golf is truly going to operate as an enterprise fund, then OB Sports needs the flexibility to maximize revenue when the opportunity exists.β
City taxpayers subsidize every round of golf at three of the city golf courses, to the tune of $12.77 per round at El Rio, $11.66 per round at Fred Enke, and $1.82 per round at Silverbell. Randolph makes a profit of $6.14 per round.
Deferred maintenance is a major challenge for the Tucson City Golf budget, city staff told the Greens Committee on Thursday.
Last year, a surprise $15,000 bill to replace an irrigation pump contributed to a $405,000 net operating loss. And this year a motor and pump replacement at Silverbell cost $18,000.
In the next five years, the enterprise will have to find money to replace irrigation pumps, nets along roadways, roads, parking lots and equipment, among other projects.
