In January of 2002 – a newly elected City Councilman Rob Fotheringham, a financial professional, wrote a letter to Cedar Hills residents the day before he was to be sworn in.  One week later Mayor Brad Sears published a Rebuttal. Ten years of audited city financials later, it is clear the warning was not heeded.   (See JPGs of their letters below…)

Fotheringham’s letter explained that the golf course purchase had been passed by CH voters the previous May of 2001, but was based on faulty information provided by then Mayor Brad Sears and the City Council.  Additionally, written promises to the citizens were being broken, causing “significant concern”. Fotheringham wrote to the residents:

“So Why am I writing? In anticipation of taking office I have been…doing some research…. …Using my professional experiences as a financial controller for the Intel Corp., … I learned some information that I believe you should be made aware of: …”

Fotheringham’s letter went on to highlight key points regarding the May 2001 election when the residents narrowly approved the golf vote:

1. The promise the golf course would remain closed on Sundays was broken by a Council vote less than six months later.
2. Many voters told him they felt cheated, regretted their vote for the golf course, saying they wouldn’t have voted for the golf course if they would have known.
3. Financial concern that the golf course would take funds from the school system.
4. The seller provided THK Associates projections of $150,000 annual — with over $400,000 profit growth by year #10 — by were faulty.
5. The City (buyer) did not seek independent financial analysis, but rather trusted optimistic analysis provided by Developer (seller).
6. Projected profits for the golf course were declared to be at risk.

 

Prior to publishing his findings for the citizens, Fotheringham had provided his research to the 2001 Mayor and Council for their review and corrections, in any. When none was received he published his findings for citizens. New Councilman Rob Fotheringham’s letter concluded:

“I feel that our elected officials have overlooked significant risks inherent in city ownership of the golf course, and that the Mayor issued a misleading flier to secure our support in the election of the golf course bond. These actions merit our scrutiny. …

“…Many of the decisions required of the Council are mundane and even tedious. But this is significant, and deserves our attention as concerned residents.”       (emphasis in original letter)

 

2002 Councilman Fotheringham’s warning letter was distributed at his own expense to the Cedar Hills community.

Since then, the golf course has averaged over $550,000 in losses (taxpayer subsidies) with 20 more years likely, which is a huge difference from the promise of $150,000 annual profits, no taxpayer money, no Sunday operation and no alcohol.   No wonder the golf course and $3.3 million clubhouse has drawn so much attention over the years.  Additionally, 10-years of impact fees were collected to build a swimming pool & rec center but a golf clubhouse, golf grill, and wedding reception center was built with the money instead.

 

 

 

 

 

Financial facts don’t cause contention, only people who fight against facts and withhold them from the public.

Here are the facts as reported days ago by current Councilman

Rob Crawley, also a financial professional (current CFO and former CPA) to the Mayor and Council. As of yet, the year by year golf course losses have NOT been reported to Cedar Hills citizens generally in the monthly Newsletter, the annual State of City report, or on the city website. Reprinted here:

 

YEAR BY YEAR GOLF COURSE LOSSES (Taxpayer subsidies)

by current Councilman Rob Crawley

• 2004    $7,114,152
• 2005    $ 105,260
• 2006    $ (14,767)  (Used leftover funds from original loan, paid down some debt)
• 
2007    $ 448,741
• 2008    $ 848,418
• 2009    $ 591,176
• 2010    $ 429,747
• 2011    $ 348,196
• 
2012    $2,631,780  (much of this is the building of the rec center/clubhouse)
• 2013    $ 786,541
• 2014    $ 358,886  (Total spent to date through 6/30/2014 is $13,648,130)
• 2015    $ 400,000  (estimate)
• 
2016    $ 800,000  (estimate, includes $300,000 for a golf maintenance shed)

 

For more on 2015 Councilman Rob Crawley’s golf course financial findings and possible alternative options, please see our CHCRG posting…

Golf Course Financial Report – Possibly most important doc in 10 years

   http://www.cedarhillscitizens.org/?p=1434

 

In 2002, one week Fotheringham’s letter, then Mayor Brad Sears provided a Rebuttal to Councilman Fotheringham’s letter. Considering 10-years of financial facts above, Sears’ sudden resignation as CH Mayor, and 10-years of continuous free golf he has accepted, — though the rebuttal is a mute point, it is provided for your consideration.   (see letter at bottom)

 

In a courageous act, Pete Cannon, a Councilman who originally supported and promoted the golf course purchase in 2001, has recently apologized for his part in promoting the ill-fated golf course.  (for details see Facebook: Courageous 2001 CH Councilman Pete Cannon golf apology — http://www.cedarhillscitizens.org/facebook-courageous-2001-ch-councilman-pete-cannon-golf-apology/ )

 

The good news is that 10-years of financial facts makes considering alternatives to a golf course, such as trading it for parks, trails, soccer fields, a cemetery, etc., an easier decision.  20 more years of golf losses is not required.  Solutions can be considered that serve 100% of the community not just 10% who golf.  Many people are starting realize this and are promoting park & trails for the kids of Cedar Hills.