Golf course water rates unchanged

Thursday, Nov. 6, 2008 | midnight

Boulder Creek Golf Course will continue paying the city the wholesale cost of water, a measure disputed by some who say since the course operates like a commercial facility, it shouldn't receive a favorable rate.

The City Council Oct. 28 considered changing the rule, but took no action.

All city departments began in July paying into the city's utility fund the wholesale cost of water and power. Previously, the utility costs had been paid by the city's general fund, not individually by department.

The switch was a recommendation made earlier this year by Finance Advisory Committee, a group, now disbanded, of volunteers with financial backgrounds who studied city finances and suggested efficiencies.

City Attorney Dave Olsen told the City Council the city "enterprise funds," which should be making money, are not required to pay retail rates for services, but that the council can set whichever rate it chooses.

Councilman Travis Chandler said this September, Boulder Creek paid less than half for water than it did last September — $44,314 compared with $114,537 last year.

"I have a problem with this," he said. "In terms of the bottom line to the city, this change in accounting doesn't really make any difference ... but the charges are substantially less. By showing less money spent, the numbers look a lot better."

Boulder Creek Golf Course was built in 2001, and the city took over its operation after a failed management contract shortly after its construction. The city has spent more than $4 million running the course.

Chandler said the city charges Boulder Creek the wholesale rate to make the finances look better than they have in the past. When the city built the course, the intention was for the course to pay for itself.

He said the city should give up the façade that the course will ever make money and begin treating it like "a city park with swings and playgrounds," which don't bring in revenue for the city.

Mayor Roger Tobler said, though the course was originally built for profit, it didn't work out that way. The rate switch, he said, is meant to "bring out more transparency in accounting."

Cassie Tomlin can be reached at 948-2073 or cassie.tomlin@hbcpub.com.