Several weeks ago, the Oro Valley Town Council approved a resolution to reduce the financial losses of its two municipal golf courses. Having lost approximately $10 million in four years, the golf courses were an issue in the 2018 election. The election pledge of now Mayor Winfield to resolve this problem was one of the two issues that won him the election. Winfield’s position differed from that of then Mayor Satish Hiremath, who did not publicly acknowledge that there was a financial problem.
The resolution is the result of a long process
Winfield orchestrated a laborious, six month community discussion. He led a number of public hearings on the matter. The hearings were attended primarily by those who live around or use the golf course. They were concerned that any change in land use would decrease their property value.
The resolution
The result of the process is the resolution LOVE published last Thursday and Friday. The resolution:
- Opens both courses for public play. Members of the courses will have access to tee times they choose. The public will have access to the rest;
- Affirms the funding of course improvements through bonding, “pay as you go”, or any other funding sources suggested by Town Manager Jacobs;
- Sets a target level of tax subsidy for golf course operations to be no more than $750,000 within three years. Mayor Winfield established this support level.
- Moves the Overlook restaurant to the first floor of the community center; makes it such that it is “consistent” with a municipal golf course;
- Accepts approximately $100,000 annually from the Canada Hills Homeowners Association in support of course operations; and
- Encourages outreach programs for youth to encourage the growth of the sport.
Other options not discussed at this meeting
The Council did not discuss other options at this meeting, such as operating one course or rescinding the sales tax. Oro Valley’s sales tax is the highest in Southern Arizona, encouraging buyers to purchase big ticket items, like furniture, outside the town.
No change likely for three years
Council Member Rodman noted that the resolution does not include any action to be taken if target tax subsidy levels are not met. Thus, it is possible that the operation of both municipal courses will continue as is for at least the next three years.
Half cent sales tax levy to continue
The half cent sales tax implemented to support these courses continues. This tax brings in approximately $2.4 annually.
Nationally, municipal golf support declining
Oro Valley’s support of municipal golf comes at time when municipal golf courses across the nation are closing as the sport declines in popularity.
