SACRAMENTO (CBS13) — The city of Sacramento is proposing to contract out maintenance of the municipality’s four financially troubled golf courses to help ease the impact on the budget, but a report by the city auditor reveals millions in debt obligations as play continues to decline.

The city’s golf operations suffered a $529,919 deficit in the 2010-11 fiscal year and is expecting a similar loss in 2011-12 because of debt obligations and declining play at its Haggin Oaks, Bing Maloney, Bartley Cavanaugh and Land Park courses, according to a report by the city auditor presented to the City Council on Tuesday.

The city had $6.2 million in expenditures in 2010-11 and $5.7 million in revenue, according to the report. The deficit was covered by a surplus in the city’s golf fund, but a similar loss in 2011-12 would likely require the city to dip into its general fund.

“The idea is that golf should be self-supporting and not take away from the general fund dollars, or the dollars that support our parks and police and fire,” said Barbara Bonebrake, the city’s director of convention, culture and leisure, which oversees the city’s golf courses.

Under the proposal, Morton Golf, which already is under contract with the city to operate the courses, would take over maintenance as well. The City Council is scheduled to vote on the plan in late October or early November and, if approved, the 38 city workers would be laid off Jan. 1.

“Outsourcing sounds good on the surface, but basically you run into the same problems down the line,” said one golfer, Joseph Scott of Sacramento.

The 38 misplaced workers would be encouraged to re-apply with Morton or be given priority for other city positions.

“We have 38 employees that have done an incredible job with limited resources, limited equipment and had their budget cut year after year after year,” Bonebrake said.

Complicating matters for the city’s golf operation, the golf fund has two outstanding loans from the city’s risk management fund: a capital improvement loan with a balance of $2.8 million and an operating loan of $4.7 million. Debt payments are being made to the capital loan at $247,000 per fiscal year, but no payments have gone toward the operating loan, according to a city report.

If payments were to start on the operating loan, the 2011-12 deficit would grow to a projected $783,000, according to the report.

This is all compounded by the fact that play at city courses continues to go down. According to the city report, play has decreased from 301,000 rounds in 2005 to 245,000 in 2010, down 19 percent. That compares to a 5 percent decrease nationwide.

According to the report, in that same time period two public courses went out of business but two were added in the area, and five courses that were previously private started allowing public play to boost their own revenues.

Comments (4)
  1. Stewart says:

    The city might think about replacing Barbare Bonebrake, she has done such a wonderful job, ruined the sacramento marina and now the golf courses.

    1. Disgusted says:

      I totally agree with you Stewart. Barbara Bonebrake is clueless and thinks outsourcing is the answer. Millions of dollars wasted on the Sac Marina and now struggling to fill the vacancies. Barbara reminds me of Carly Fiorina at a lower level. Carly failed at Lucent Tech, then failed at HP. City Council members beware of her deceit and false analysis.

  2. Fred G says:

    Maybe if they didn’t spend all that money to get cars to drive 2 blocks on K street….

  3. tom says:

    Why go with the private company that is managing your golf courses and are losing money? A private company that has NO experience managing the maintenance side of the golf industry. When was the last time the City audited Morton Golf and research if they are abiding by their contract obligations?

    Plus look at the poor management decisions of the (Now retired) City Golf Division Manager Doug Parker that shows a decline in revenue since his accepting the position. The same City Golf Division Manager that was recommended by Morton Golf and as of late sat next to Mr. Morton during current City counsel meetings on privatizing.

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