HI Board considers recommendations for funding golf operations in 2010

HOLIDAY ISLAND -- In another long discussion at Monday's work session, the Holiday Island Board of Commissioners considered staff recommendations for funding golf operations for 2010.

The suburban improvement district has subsidized golf at 46 percent over the last five years and wants to change that.

District Manager Kevin Crosson said even though the Ad-Hoc Golf Finance Committee recommended that user fees fund 60 percent of golf operations, staff recommends the district try for a target of 75 percent.

He said the staff proposal is a "further refinement" of the committee's earlier recommendations.

Major suggestions include eliminating the all-inclusive activity card, separating golf from recreation; charging $300 for an individual card and $450 for a family card and an additional $1 for every nine holes played.

Other increases would be instituted for cart leases and trail fee stickers, with rider fees being dropped.

The courses would remain semi-private, with staff advertising golf at a discount not less than $35 before noon and $29 after noon.

The proposal speculates the changes would bring in from $35,000 to $50,000 annually in increased revenue.

A comparison chart with other planned communities in Arkansas shows Holiday Island as being the cheapest golf, taking into consideration the annual assessment and the activity card, cart/trail and daily round fees. Based on a two-person household playing two rounds per week with their own golf cart, Holiday Island costs $1,005; Cherokee Village, $1,163; Fairfield Bay, $1,852; Hot Springs Village, $2,970; and Bella Vista, $3,617.

Golf Pro Barry Storie said most golfers at Holiday Island play 50 to 100 rounds per year. With the changes, those playing 50 18-hole rounds could expect to pay $8 per round; 100 rounds, $5; 150 rounds, $4; and 200 rounds, $3.50.

Those who play less than 25 rounds per year would pay a daily fee of $15.

Two of the biggest objections to the plan were the steep increase on cards and the additional per-round fee.

"This is a bad time to raise prices on Holiday Island people," said Commissioner Bruce Larson. "Most of us can't live on Social Security; we rely on life savings. We can't handle a 100-percent cost increase."

He said many people lost a high percentage of their retirement in the stock market downturn.

"Complaints I've gotten are about the daily fee," said Chairman Ken Mills. "I thought we said the people who play more would pay the burden, but if you look at the chart, those who play more pay less per round."

Commissioners asked what the cost per round is to maintain the golf courses.

Crosson noted that with the $800,000 cost to maintain the golf courses, divided by 24,000 rounds per year, "You're looking at $33 per round."

But that figure is arbitrary, as how many rounds played in a year cannot be predicted accurately, and rounds played are down at both courses.

"If we have 20,000 rounds, our basic cost to recoup through activity cards is $10," said Mills. "We've got to make that up somehow. The $4 figure is not recouping our cost."

Another option was to add a fee to the water bill, like the security fee, Crosson said.

"You're asking for a lynching if you add any more to that water bill," said former commissioner Jack Hill. "It's high enough as it is."

He also said of the per round fee, "Dollaring them to death is going to drive them away."

The board called for a comparison profit-and-loss study from other planned communities, and Crosson said he would prepare one.

In other topics, the board:

* Considered the one bid received for a new fire rescue boat, at $18,476.98. This cost would be split three ways with the rural fire district and the Ladies' Auxiliary.

* Discussed bid packets to add marina flotation to the courtesy dock, dock #2 and under the access ramp.

* Considered a recommendation to purchase permanently installed generators for the 9-hole booster station and well #4, at a cost of $46,279 through the state procurement program. The board also considered a contract to hire a leak-detection crew for a contract not to exceed $10,000 and a recommendation to modify, repair and improve the district's telemetry system at a cost not to exceed $20,000.

The board's business meeting will be held Monday, Sept. 28, at 9 a.m. at the district office at 110 Woodsdale Drive. The public is welcome to attend.