Source: Macon Telegraph (Georgia)
Bowden Golf Course, a city-funded department long strapped for cash, could take its biggest hit this year unless the administration makes drastic changes in the way the 18-hole course operates.
An audit of the department, released to the Telegraph earlier this week, says the operation "is in serious financial trouble" and the fund is "barely solvent." The report is the first comprehensive financial audit conducted on Macon's golf program in more than three years.
Based on budget projections, the department could lose more than $200,000 this fiscal year - the most since the operation was removed from the umbrella of the parks and recreation department and turned into an enterprise fund in 2000.
City officials, though, say they have plans to give the embattled golf course a face-lift, and some ideas are already being implemented.
For example, the club house has been repainted, the carpet cleaned, the scoreboard replaced and the course pumps fixed so the fairways, driving range and putting greens are no longer dried out. City officials are also looking at several marketing plans they believe will lure in more players and enable them to host more tournaments, banquets and parties.
"We want to show people we care - that we're cleaning this place up," said Macon Chief Administrative Officer William Saunders, who is helping the parks and recreation department oversee the course's management.
City leaders on Monday are expected to present Macon's Appropriations Committee with a revised budget that shows the operations could break even for the current fiscal year.
Bowden is one of several enterprise operations the city typically underwrites year after year. In theory, these operations are supposed to run solely on their revenues. Other city enterprise funds include the airports and garbage collections, or solid waste management, and the Centreplex.
Like most of these enterprise funds, the golf course has lost money during the past few years and all losses have been covered by the city's general fund.
In fiscal year 2003, the general fund had to cover $109,000 in losses for the golf course; in fiscal year 2002, $77,200; and $131,900 in fiscal year 2001, according to city audits.
The audit on the golf course did not include fiscal year 2004 losses, and the city's audit will not be released until at least January. However, based on revenue received in 2004, it appears the city's general fund will have to underwrite about $140,000 in losses for the course in 2004.
The audit, by local accounting firm Clifton, Lipford, Hardison & Parker, said the course has long suffered from money and management problems. If improvements aren't made, the course might have to shut down.
"Significant errors and irregularities had gone undetected or uncorrected which negatively impacted the reliability and integrity of the financial and operating information," the audit states.
The audit also cited lack of on-site reviews and oversight of financial activities, inaccurate recording of program revenues and expenditures, a lack of record keeping and failure to prepare multi-year financial plans.
Mark Hardison, who leads the audit team, did not return calls seeking comment. Hardison, the city's auditor, typically does not comment about city finances and refers questions to his audits.
Under renovation
At the foot of the Millerfield Road entrance to the 64-year-old golf course a new sign reads: "Under Renovation, Please Pardon the Progress."
Saunders, the city's chief administrative officer, said he crafted the sign to let visitors know that the course is changing for the better.
"We want people to know that we're doing something and we mean it," he said. "We want them to know that it's kept up to par ETH pun intended."
Inside the newly painted clubhouse, donated chairs and tables are neatly laid out, inviting golfers to come in and take a break. The carpets have been cleaned - so, too, have the bathrooms that, Saunders says, looked like they came out of a "truck stop." In addition, dangling cords have been fit into place, holes patched and outlets fixed.
The cafeteria, which includes a full kitchen and grill, is now available for banquets and parties.
"People used to come in the door and step back like they were scared," said Tina Anderson, a long-time course employee who helps oversee the pro shop. "Now they're coming in and saying 'Wow.' "
Outside, the pumps have been repaired so that the course gets enough water to keep the grass healthy. The water fountains also are working now.
Asked why the course was neglected for so long, Saunders said: "We just allowed it to happen. it didn't get all the attention it needed ... My concern is how we fix it - I can't fix yesterday, I can fix today."
The main objective now is the bottom line - finding ways to make money on the course, which is open year-round.
Since 2000 the golf course has tried to support itself mostly though green fees, membership dues and golf cart rentals.
The spending plan for this fiscal year, which began July 1, budgets $502,000 for the course's operation, some $203,000 more than it takes in.
Revenues also are expected to continue a downward trend, although they haven't been released for the current year. Since 2002, revenues have dropped from $410,000 to $314,000 in 2004.
The department's annual operating budget varied between $460,000 and $550,000 during those years.
"Our objective is to be responsible and accountable. Audit or not, our goal is to improve the bottom line," Saunders said. "We want the golf course to generate revenue, be self-sufficient. Before we weren't minding the store. Now we are."
Tightening oversight
Bowden Golf Course until 2000 was controlled by the Macon-Bibb County Parks and Recreation Department and typically broke even. That year, the City Council, though, turned the operation into its own department in an effort to find ways to generate more revenue.
City officials admit that they lost oversight of the department and didn't pay enough attention to it.
The recent audit shows that revenue projections were often overstated and expenditure projections understated. There were also accounting errors and overpayments.
For example, in fiscal year 2004, finance officials reported almost $19,000 in overpayments to Citicapital, the company that rents golf carts to the city.
In addition, salaries for the eight full-time employees exceeded budget by 19 percent and 6 percent for the five part-time employees.
The golf pro Jim Hickman, who managed the course, received bonuses of $2,800 in 2003 and $2,700 in 2004, according to the audit. However, auditors state that they were unable to determine the circumstances in which he should receive the bonuses.
"We were concerned in particular that the bonus may have been performance-based and contractual," the audit states. "We found no bonus stipulation in the agreement dated November 1989 between the city of Macon and the golf pro."
Hickman said he didn't actually receive bonuses, but rather 5 percent of the cart rental fees, according to his contract.
Hickman, who presided over the course for more than 15 years, left in August to take a job as director of golf at River Forest, an upscale residential community in Monroe County.
When he resigned, city leaders transferred management back to the parks and recreation department. Saunders said he's now looking to hire a manager and superintendent for the operation, a move that, in itself, could lead to new revenue streams.
City officials have not faulted Hickman for any of the course's problems. Many say Hickman did a good job, but the city couldn't always afford the upkeep for the course.
"There's really nothing I can say about the situation - I think everyone knows what the deal was," Hickman said. "I think it's wonderful that they're taking the steps to fix things.
"When I was leaving, I said 'Darn, I'm leaving at the wrong time,' because I thoroughly believe what (Saunders) told me when he said he wanted to see the course back on track," Hickman said. "I think he's a man of his word and he wants to see it done."
As the city looks for more ideas to boost the appearance, revenues and attendance at the golf course, one suggestion has been ruled out: privatizing the operation.
"We're not even looking at that," Saunders said.
Instead, he would like to funnel the bonuses and incentives the golf pro earned into the city's coffers. Hickman, who made an annual salary of $40,000, also earned $78,000 in revenue from merchandise sales, the driving range and pull carts.
"It's hard to project that we're now going to lose $200,000 because all that money (that Hickman made) will now be coming to the city," said Ben Hamrick, business services manager for the parks and recreation department.
The course will also be offering more classes and training seminars, and try to host more tournaments, to pull in more money. Prices, which remain among the cheapest in Middle Georgia, also were bumped slightly.
Golfers pay $23.32 during the week for a golf cart and green fees and $26.67 on the weekend.
Councilwoman Elaine Lucas said she had concerns about the golf course's finances, but feels that the new management brings stronger accountability.
Lucas, whose Community Resources and Development Committee is now keeping a close eye on the department, added the course's physical appearance is "100 percent better."
"If you had seen the clubhouse before and you see it now - you'll know that there is a difference out there," she said.