Finance director: Surbak Cliffs golf course runs a roughly $600,000 operating deficit in FY25; revenue, rate and enterprise-fund options debated

City finance staff told the Golf Commission that the municipal golf course operated at an estimated $600,000 deficit in fiscal year 2025 and that the shortfall is covered from the city’s general fund.

“For fiscal year 25, we are expecting to collect about $1,300,000 in revenues and spend about $1,900,000 in expenses, leaving a deficit of about $600,000,” Director Moline, the city’s finance director, told commissioners. She said that deficit is supplemented from the general fund, which relies on sales tax and state shared revenues.

Why it matters: Commissioners said they want more transparency on both revenues and detailed expenditures and pressed staff for activity-level reports showing where money is spent (personnel, parts, cart repairs and other operating items). Commissioner Dale and others discussed whether to try to make the golf course “revenue neutral” or to convert it into an enterprise fund; staff said an enterprise fund would require the course to fully pay its costs and that at current levels the course would need significant rate increases to cover the gap.

Key budget and policy details discussed in the meeting included: - Director Moline noted capital projects—such as a driving-range netting replacement costing roughly $400,000—are often funded outside the golf course operating budget from other funds (bed tax, construction sales tax, cash reserves). - The course’s water costs are paid through the city’s water user charges and are not currently charged directly to the golf course operating line; staff warned that including water costs would increase the operating deficit. - Commissioners noted the last green-fee rate increase occurred in February 2018; staff said proposed rate changes for fiscal year 26 would take effect July 1 and were not reflected in FY25 worksheets.

Commission direction and next steps: commissioners asked staff for a more granular breakdown of expenditures (personnel, carts, maintenance parts) and for analysis of options to reduce the deficit, including rate adjustments, rounds-per-year targets and cost-control measures. Staff said they would prepare additional detail for future meetings and would continue to recommend against converting the course to an enterprise fund unless it becomes self-sustaining.