$1 million trimmed from Boulder Creek’s budget

Dan Kulin

Wednesday, Aug. 27, 2003 | 9:26 a.m.

The Boulder City Council on Tuesday cut $1 million from the budget of the financially troubled Boulder Creek Golf Club and told city staff to plan for a November 2004 ballot question that would ask voters if they want to sell land around the golf course.

The budget cuts did not include a reduction to the $650,000 annual fee the city pays Triad Golf Management to run Boulder Creek, even though as late as Thursday afternoon city staff were set to recommend the council pay Triad $202,000 less.

City Attorney Dave Olsen advised the council during the Tuesday meeting to pay Triad the full $650,000 much the city agreed to pay the company in its contract.

Triad President Scott Jones said the budget cuts should not be noticeable to golfers.

Boulder City Golf Course Manager Bob Conrad, who helped develop the new budget for Boulder Creek, said last week that about $485,000 of the budget reduction came from finding an accounting error that counted some debt payments twice. Other budget cuts came from reducing spending on fertilizers, chemicals and staff.

Last week city officials said the total proposed spending cuts, including the recommended reduction to Triad's management fee, would lower what was a $4 million budget by about $1 million. But Tuesday City Manager John Sullard said the $1 million in cuts did not include the proposed cut to the management fee.

According to city figures, Boulder Creek ran an operating deficit of about $950,000 during its first six months, from the beginning of January through the end of June. Including the cost of other expenses such as depreciation, pre-opening expenses and accrued interest on the $22 million used to build and equip the course, Boulder Creek has cost about $2.5 million more than it has brought in.

While city officials hope the budget cuts will begin to bring costs closer to revenues at the course, the council is also looking at selling land around the course to help pay off the $22 million debt.

In Boulder City the sale of city-owned land must be approved by the voters, so on Tuesday the council instructed city staff to plan for a ballot question. Mayor Bob Ferraro said there is about 32 acres of vacant land around the golf course that could be sold for development.

Officials have said about 62 single-family homes could be built on the property, but Sullard said Tuesday that the exact number is still unknown because the property has not been divided into lots yet.

Sullard said there would probably be eight to 10 public hearings on matters surrounding the sale and development of the land.

He also laid out a schedule that would put the question on the November 2004.

Citizens who spoke during the Tuesday meeting on the matter said they supported the proposed land sale.

"Developing the land makes sense," said a woman who identified herself as a neighbor of Boulder Creek. "I hope doing nothing is not an option ... Now we have a tumbleweed lawn protected by a chain link fence."