PRESS RELEASE: Thursday, November 15, the Cedar Hills Golf Course Financial Advisory Committee sponsored a Town Hall meeting wherein the committee reported the $550,000 per year average in taxpayer subsidies since opening. (see www.CedarHills.org for the City’s posting)
In 2001, the citizens were convinced by the City Council to vote in favor of bonding $6.4 million to acquire the golf course from the developer who was already building it. The Mayor and Council promised $150,000 a year in profits, that would help minimize the tax burden.
Cedar Hills Citizens for Responsible Government, an ad hoc group of concerned residents, was pleased that the city finally admitted that golf course has never made a profit in any year. The issue of the golf profitability has long divided the residents, with many being misled by city officials into believing the golf course was profitable with “positive cash flow”, as reported on the front page of the September 2011 City Newsletter, prior to the last city election.
“The City is to be congratulated for finally getting the golf course financials completed,” said Jerry Dearinger, the citizen group’s legal advisor. “Now we would encourage them to put these facts on the front page of the City Newsletter so citizens can see the financial facts and make informed decisions.”
Cedar Hills Citizens for Responsible Government believes it important for City officials to correct the misconception that the golf course has been profitable with “positive cash flow”, by publishing the golf committee’s financial summary, in the place most likely to be seen by most of the Cedar Hills residents. We believe that place to be the front page of the City’s monthly newsletter, mailed to every home.
Dearinger added, “We think providing the year by year taxpayer subsidy facts on the front page of the Newsletter, will increase the likelihood of citizens learning that information, and help separate the current Council from the decisions of the past leadership.”
The Golf Committee also presented a business plan regarding new proposed marketing approaches they believe will increase revenue. When a citizen asked the Committee which year the golf course would enjoy its first break-even year, the response was that they did not have such a projection, nor did they want to potentially disappoint citizens by offering a projection.
Angela Johnson commented, “The Committee talked about the golf course not being profitable and that there is no likelihood someone would buy it. There was no discussion about the free golf given to employees and the Council. There was no discussion about alternatives to keeping the golf course.”
Cedar Hills agrees to pay $190K settlement
see DAILY HERALD – November 18, 2012 article at…
(PRESS RELEASE continued…) Immediately following the golf Town Hall meeting, a Special City Council Meeting was held regarding a lawsuit against the City. The Council went into a closed-door executive session, and upon return, voted unanimously to pay the Utah Valley Homebuilders Association $190,000 in a settlement of the lawsuit, which alleged among other things, a misuse of recreation and swimming pool impact fees. The city had collected $2.9 million to build a recreation and swimming pool facility. Despite our warnings that the city could be sued, the Council used the impact fees to build a golf clubhouse, golf pro shop, grill and wedding reception center.
“City officials chose to double-down on the ‘golf investment’ gamble, by spending the impact fees for the golf clubhouse,” said citizen group member Curt Crosby. “We had been promised, and city ordinance required, that this building would be brought to a vote of the citizens. We didn’t get to vote. It seems to me that the payoff of the $190,000 settlement, is in essence an admission of some level of guilt that the city didn’t use the money for what it was collected.”
Johnson said, “Should the city still consider finishing the basement? They would need to use CARE tax money or money that had been set aside for a city building. My hope is that we could use any additional funds to pay down our debts and not worry about finishing the basement now with a price tag of upwards of $300,000. ”
“Where’s the pool and rec center residents paid for?,” said Ken Cromar, former Councilman and researcher for the citizen’s group, “There is no end to the ‘good’ you can do with other people’s money.”