Two of Susanville’s enterprises, the airport and golf course, have ended the fiscal year with a negative cash balance.
Not only is the city of Susanville temporarily funding these enterprises with the general fund, it’s increasing the golf course’s rates and fees.
The city described that the Golf Course and Airport Enterprise funds have negative cash balances that have been accumulating for a couple of years.
At the end of June, the golf course had a negative cash balance of $48,692 and the airport a negative balance of $52,780.
When these funds have negative cash balances at the end of a fiscal year, the city temporarily borrows cash from the city’s general fund to remove the cash balances. Booking a due to/due from at the end of the fiscal year and reversing that entry at the beginning of the next fiscal year accomplish this.
By following this process, the struggling enterprise funds continued to accumulate negative cash. The city now has a policy to transfer cash to each of these funds at the end of the fiscal year to remove the negative cash and stop the accumulation.
This also gives the city council the opportunity to discuss the funds that are struggling and suggest changes to assist them in the coming fiscal year.
The city staff evaluated revenues generated at the Diamond Mountain golf course compared to expenses and it was apparent to them fee increases were warranted.
Over the past several years, the golf course revenues have not completely covered expenses. The interim city administrator, Dan Newton, solicited feedback from those involved in the operation of the golf course and recommended modifications to the fees. Additionally, the staff recommended modifications to the fees that staff claims would simplify the rate structure and potentially lead to more
rounds of play. The proposed modifications result in a fee structure consistent with neighboring public courses.
18-hole green fees will increase from $20 to $25 on Mondays through Thursdays and increase from $25 to $30 on Fridays through Sundays. Nine-hole green fees will jump from $15 to $20 on Mondays through Thursdays and jump from $18 to $25, Fridays through Sundays.
Cart fees and driving range prices will stay the same, but memberships will increase.
All memberships will increase by $100 per year. An individual membership will now cost $1,300 and an individual with a cart will cost $1,600. A couple’s membership now costs $1,850 and a couple with a cart will be $2,150.
Specials will also change. The 10 play cards for 18-hole rounds will increase to $240 and with a cart, to $300. Nine-hole rounds would change to $190 and with a cart, up to $250.
There will be only one twilight special, and it will be after 2 p.m. and cost $15.
Senior rates will increase to $18 for 18 holes and $12 for nine holes.
The total revenue will come to an estimated extra $29,795 increase for the 2019 season.