Guest View-Tony D'Angelo: What's Next For Community Center Operations

What’s Next for Community Center Operations?
There are two very different aspects of Parks and Recreation in Oro Valley. There are the traditional amenities—playgrounds, ball fields, trails, multi-use paths, and cultural venues like Steam Pump Ranch. Most of these assets are paid for by tax proceeds and grants. Only about 10% of operating costs and capital investments come from user fees.

Fee-Based Recreational Facilities
The other part of Parks and Recreation includes amenities for which users pay fees. These include the Community Center health club, the Overlook Restaurant, El Conquistador Golf, El Conquistador Tennis, pickleball courts, and the Aquatic Center. Because these facilities are owned and operated by the town, they are not considered “for profit” but are managed with the goal of offsetting most expenses through user fees. Currently, user fees cover approximately 60% of the costs associated with these assets. Not only do these assets meet the needs of Oro Valley residents, but they also attract and serve visitors. Should both aspects of Parks and Recreation be managed together and in the same way?

A Shift in Oro Valley's Growth
We are at a point in the evolution of Oro Valley where growth through land development is reaching its limit. To meet the future needs of our community, Economic Development is exploring alternative ways to generate revenue. Our fee-based community recreational assets already contribute to a tourism strategy.

Investing in Fee-Based Assets
Leveraging fee-based assets requires investments to maintain the quality needed to attract the desired audience. These facilities must be well-maintained, aggressively marketed, and managed in ways that balance their use to serve both residents and visitors. To achieve this, we should consider creating an enterprise entity for fee-based recreational assets to ensure they are mostly self-funded. This could involve establishing a separate taxing authority. Fees need to remain affordable for residents while being sufficient to cover operating costs and future capital needs to maintain the quality expected to attract and serve visitors and businesses in Oro Valley.

Current Management vs. Revenue Potential
Currently, revenue-generating assets are managed in the same way as non-revenue-generating facilities that are freely accessible to the community. The distinction between these types of assets is clear. For example, Kriegh Park is a general-use facility for baseball and softball, with a playground and walking path—all mostly free. In contrast, the adjacent Aquatic Center is a revenue-generating facility that hosts swim meets and supports the town’s sports tourism strategy.

Enhancing Economic Development
Revenue-generating facilities should be strategically used to support the town’s economic development, specifically through sports and recreational tourism. These facilities need focused attention to ensure they achieve the goal of bringing visitors and their spending to the community.

Proposal: A Commission That Reports to the Council
Assigning an accountable commission that reports to the council to oversee fee-based facilities from a business perspective is more appropriate than using valuable Town Council resources to discuss operational details, such as dust abatement on the El Conquistador Course. Many communities have established enterprise funds or similar oversight organizations to manage user-fee-based recreational operations. This model could be applied in Oro Valley.

The Challenge Ahead
Our Parks and Recreation staff does an excellent job managing a diverse range of assets. The challenge going forward is determining whether it is realistic for them to manage everything in a way that best serves both residents and the town’s economic future.

I believe exploring this alternative is worth debating.

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Tony D'Angelo is a long-time Oro Valley resident and President of the Friends of Pusch Ridge Golf. 

Guest View: Mike Zinkin ~ Why did the town “Overlook” the fact that local restaurants are struggling to survive during the pandemic?

 

Town reopens The Overlook restaurant
Imagine my surprise when I returned from a short vacation and saw a sign announcing that the Overlook was open AGAIN.

Here is a little history. When we purchased the property from HSL, the restaurant was called La Vista and it was closed because neither Hilton nor Sheraton could make enough money on it to justify staying in business. Then Oro Valley buys the property and reopens the restaurant.

When I asked then Town Manager, Greg Caton, who authorized the opening, he replied that “it was always assumed that we would open it.” I have no idea where that assumption came from because it was NEVER discussed with the Town Council; it was just an arbitrary move by the Town staff. The name of the establishment was changed to the Overlook and it lost hundreds of thousands of dollars (your tax dollars).

Locally owned restaurants have lost business
Now the COVID pandemic comes and the Overlook was closed. As a result of COVID, all restaurants have suffered and many have closed. Privately owned restaurants are especially hit hard due to the fact that they don’t have the same reserves as the franchised establishments. In Oro Valley, our privately owned restaurants include Harvest, Noble Hops, Torino, and Charred Pie, to name a few. We also have The Views in Sun City run by the HOA.

So what does Oro Valley do? They reopen the Overlook. It not only has a history of losing money, but it puts the Town in direct competition with privately owned restaurants who are struggling to survive during this pandemic.

Who made this decision?
I asked two current Council members if the Council authorized this and they replied in the negative. This move to reopen the money-losing, competitive restaurant was a decision made by Mary Jacobs and her obedient staff. This is the same Mary Jacobs who professes support for local business, yet she opened an establishment that is in direct competition with the private sector. The Overlook should be boycotted. Please spend your money dining out (or ordering takeout) at local restaurants.

Although the current contract with Antares makes them totally responsible for all food and beverage losses (or profits), Antares does not pay to lease the restaurant space and does not pay for the utility expenses. This is not how the private sector operates.

Mr. Mayor and Council, you need to affirm your position that you are the policy makers for Oro Valley, not the Town Manager. Please close the Overlook. You will be saving taxpayer money and helping local restaurants in the process.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

The Watchdog Report: February 2020, The Best Yet. However…

The financials are in for February 2020 and they are the best yet. The Community Center Fund (CCF), with both the contracted (Troon) and Town-sponsored facilities actually made a profit of $2,035. The balance of the CCF through Feb. 2020 is $332,266 which is $34,858 above the forecast.

The total membership of the golf “club” was 262 which was unchanged from January but was 22 more than in February 2019. The total number of non-member rounds was 4,673 which totaled 1,256 more than the same time last year.

The Overlook was budgeted to lose $1,416 in February but actual losses were $5,034. However, this is still much better than last February when they lost $10,871. However, the total Overlook losses so far this fiscal year (July 2019 through February 2020) were $89,185 which is $17,400 more than the forecasted amount of $71,785. The Overlook is currently closed, and, hopefully, will not re-open. The Town is forecasting a CCF surplus over $400,000. Why don’t we use that money to make the Community Center ADA compliant? In fact, of the budgeted $106,500 set aside for capital outlay, only $26,697 has been spent. With the building closed and nobody walking around, this would be a great time to make the facility ADA compliant.

Why do I say, however?
With all this great news, why do I use the word “however” in the title? It’s not because I see the glass as half empty. I say “however” because of the current pandemic.

As of February 2020 ,your sales tax subsidy to the CCF is 3.3% above forecast ($1,728,698). However, according to the recent Financial Report to the Council:

“Due to the impacts from Covid-19, current year end estimates have been revised down $2.3 million from January’s estimate.”

The report goes on to say:

“It is important to note that due to the timing of sales taxes received, forecasted declines may not be seen until as late as May 2020.”

As previously stated in my April 20th Guest View, “Who’s running the Town?” a communication I received from the Town on 7/1/19, stated that there were 13.18 full-time equivalent employees (FTE) at the Overlook (which is now closed). The entire Community Center (which is now closed) employed 73.73 FTE’s. Despite these closures, the town has not furloughed or laid off any employees.

The Town Manager advises us about a future with reduced revenues. Due to the pandemic, Sales Tax, Bed Tax, State Shared Revenues are all going to be less than forecasted in FY 2019/20. It’s time to look at our expenditures and start reducing them. One of the reasons that we elected the “new Council” is because we were looking for fiscal responsibility.
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Mike and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Guest View: Mike Zinkin ~ Who’s running the town?

In the midst of the coronavirus pandemic, we have all been witness to what happens when responsibility without direction is left up to subordinate levels of government. Is Oro Valley any different?

Below are some quotes from both local and national media
April 14, 2020 – the Washington Post: "Local governments generally cannot run deficits, unlike the nation’s capital, leaving them no choice but to slash spending or raise taxes.”

April 16, 2020 – the Arizona Star: “City workers could face furloughs and layoffs as Tucson deals with steep, unexpected revenue losses as a result of the coronavirus pandemic, City Manager Michael Ortega says.”

April 16, 2020 – KGUN TV:  “In a memo Wednesday, County Administrator Chuck Huckelberry said retail sales in the county are down almost a third this quarter. He says restaurants, bars and hotels are down 70%. Huckelberry says it's likely [that] all state-shared revenues will be down about $11 million, so he's asking all departments to prepare for a 5% cut if economic conditions continue to deteriorate."

The Town has not furloughed or laid off any employees
Does Oro Valley think things will be different here? In a recent communication from the Town Manager, I was informed that the Town has not furloughed or laid off any employees despite the closure of the Community Center and the Overlook Restaurant.

The Town’s Pandemic Leave Policy explains employee entitlements, however, unlike businesses small and large, there is NO money coming to the Town of Oro Valley from the Federal government. This is an unfunded mandate. Additionally, there is nothing in the Town’s Pandemic Leave Policy that precludes reducing the workforce.

Although this is a difficult thing to do (and I am certain I will be chastised by some for mentioning it) Oro Valley has no choice.

Per information obtained in a Public Records Request, as of 7/1/19, there were 13.18 full time equivalent employees (FTE’s) at the Overlook and 73.73 FTE’s employed at the Community Center.

We are just starting to get a look at the February financials in mid-April. However, this financial report will not reflect the economic conditions that we have experienced since February. We won’t see the April financials until June.

Due to the pandemic and resulting economic downturn, sales tax, bed tax, HURF revenues, and State shared revenues are all going to be well below forecast. Therefore, we have no alternative but to reduce our expenditures.

The Town Manager is in charge of the Town’s staffing. As such, she is in a difficult position. On one hand, she needs her staff to know that she is there for them and will do all she can for them. On the other hand, she is responsible to the Council and must show fiscal responsibility, especially during times like this. That is why the Council must take the decision out of her hands and do what is right for the Town of Oro Valley.

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Mike and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities, a member of the NLC Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Mike Zinkin's Watchdog Report: "Something's Fishy. More Rounds Played But Less Revenue Earned"

The numbers and categories look very fishy
In January 2020, the golf revenues were $642,052 with a reported 4,205 rounds of non-member play.  By comparison, in January 2019, the golf revenues were $718,791 with 3,762 non-member rounds.  According to the January 2019 and 2020 Financial Reports to the Council, there were 443 more non-member rounds played in 2020, but the revenues were $76,739 less.  How can there be more rounds played but less revenue produced?

Until the January 2020 report, the Town showed member dues as its own separate category.  Now the Town shows the category as Golf Member Dues, Trail and Cart Fees.  As a result of adding the trail and cart fees to this category, the Town now shows that in January 2020 there was $152,095 more revenue in this category than in January 2019 ($617,642 vs, $465,547).

In January 2019, there were 219 golf members, while in January 2020, the number increased to 262.  The 43 additional members have increased the revenue stream by $152,095, or $3,537 per member ($617,642 - 465,547 divided by 43).  Even with all this maneuvering, the contracted losses (Troon) were $1,107,932 through January 2020.

There is no mandate in any contract to operate the Overlook Restaurant
After researching both the original Purchase and Sales Agreement (PSA) between the Town and HSL, the original Troon contract, and the amended Troon contract, I can tell you that the town has no contractual obligation to operate the Overlook Restaurant.

The Troon Contract, as amended, states in Section 4.01 (xi) that Troon shall “supervise and coordinate food and beverage activities at the Facility, including, if applicable, banquet operations.”

This does not mean a full service restaurant.

A food and beverage cart or the (now closed) Garden Café provides for this service.  Seven months into FY 2019/20 (July 1 through January 31, 2020) the Overlook has lost $64,195, or the approximate cost of two swing sets for our parks.

The mayor states that the new contract with a course manager  will go into effect on October 1. This contract will state that the Town will no longer subsidize the food and beverage operation.  However, the Mayor believes that the new management firm can not close the Overlook without council authorization.

The mayor and council need to recognize that the Overlook has never made a profit nor broken even.  It is a government entity that is in direct competition with the private sector and should be closed now.  Not many private businesses would go on for this long with this record of continued losses.

Mike Zinkin's Watchdog Report: "Oro Valley's Cover Up"

The Overlook Restaurant was opened by the town
When the purchase agreement with HSL was finally consummated in 2015 there wasn’t a full service restaurant located in the Community Center building. The La Vista had been closed by Hilton.

Shortly after the purchase, the Town Manager, Greg Caton, invested around $40,000 in capital improvements and the restaurant was re-opened. When I asked Caton where he received the authority to arbitrarily open the restaurant, his response was (paraphrased) that it was always assumed that we would do this.

Why is the town competing with private businesses?
Why would a government open a business that was in direct competition with the private sector? Why was this needed when the Garden Café (which was subsequently closed) and the beverage carts were meeting the needs of the golfers?

The results were continued losses 
Since the opening of the Overlook Restaurant losses have exceeded $608,000. Do you think local eateries like Harvest or Torino’s could remain open with this record? The Oro Valley Citizens have subsidized this for too long.

A beverage cart would meet all contractual obligations
When on Council, I asked to discuss the potential of closing the Overlook Restaurant. Then Council member Snider advised me that she had been told by the Attorney that we could not do this.

When I approached the Attorney in the break room and asked him about this he responded (paraphrased) that the Troon contract mandated that they provide food and beverage for the golfers and to close the Overlook Restaurant would limit their availability to do so. I responded that a beverage cart is all that is needed to provide food and beverage, to which he had no reply.

So why is the Overlook Restaurant still open?
Now enter a new Council and new Town Manager. This newly elected majority ran on a fiscally responsible platform. So why is the Overlook Restaurant still open?

In an email to Mary Jacobs, Town Manager, I wrote: “The day we purchased the property there was no restaurant, as Hilton had closed the facility.  After looking at the financials since we purchased the property, closing the restaurant was/is the fiscally responsible thing to do.  Even Hiremath was talking about closing the facility.

If there are any restrictions prohibiting the Town from closing the Overlook Restaurant, please forward to me the appropriate paragraphs from either the Troon contract, or the Purchase agreement.”

Town staff won't answer the question
The response I received from the Clerk’s Office, as per Jacobs’ instructions, was a list of 7 different PDF’s, containing over 650 pages of information. The Town, instead of just answering my question, snowed me with pages of stuff. I expressed my complete dissatisfaction in a subsequent email to Jacobs: “Your office works for the People.  Forward me the answer.  Either:

1. There is no mandate for the Town to provide for a full service restaurant, and therefore is within their right to close the Overlook, or 
2. The ________document states that there is a mandate for the Town to provide for the Overlook.  Here is a copy of the statement.”

Now comes the coverup
Here is Jacobs’ response: “While I appreciate that you want a definitive answer to your question, respectfully, the Town has timely responded to your public records request.  Unfortunately, what you now request involves more than public records; it involves legal research and analysis, something that the Town’s attorneys cannot do for you or anyone else outside the Town without creating a legal conflict of interest."

What is Jacobs hiding behind legalize? Is she hiding the fact that there is no mandate to retain the Overlook Restaurant? I am certain if there was a legal stipulation to maintain the Overlook Restaurant, she would answer my question.

This complete chain has been forwarded to all 7 members of the Town Council.

Let’s see what happens.  
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LOVE has confirmed with a council member that there is no contractual reason why the Overlook Restaurant was opened. Nor is there a contractual reason for it to remain open. Zinkin's assertions are correct in this regard.

In addition, the town does not intend to subsidize food operations after the course manager is selected, effective in October. This is from the town's latest addendum to the request for proposal. "With regard to food and beverage, the intent is that the Contractor is to include food and beverage service, however the Town will not subsidize that service.  If the Contractor is not interested in providing food and beverage service that must be included in their RFP response."

Bits and Pieces

Status of Pusch Ridge Course Unclear
The Town of Oro Valley continues to operate 45 holes of golf. The Pusch Ridge course continues in operation. The town is in negotiation with the owner of the El Conqustador Hotel, HSL, to take it over. Mayor Winfield told us that he is"...not at liberty to say more than that."

HSL needs to course in order to remain a viable golf destination. However, they "hold the cards" because the original sale, negotiated in 2015 by Mayor Hiremath, substantially restricts the town in terms of simply closing any one of the three courses the town still runs.

The Overlook Restaurant continues to operate
"The Town released an RFP [Request For Proposal]  a few weeks ago for golf operations. The RFP requires the new operator to manage the Overlook with no subsidy from the town," according to Mayor Winfield. The agreement reached by council in November was that food and beverage operations at the Community Center would be scaled to that which is appropriate for a municipal golf operation. The operation would be moved downstairs. That is not in the RFP.

Feedback to date on Parks and Recreation Master Plan study shows kids needs a low priority
Input received by the town, to date, would say that Golf is the number 1 recreational need of the town. Right behind that is making improvements to the community center. Third is preserving the closed Vistoso Golf Course as open space.  Community Center Improvements on hold, pending completion of the Parks and Recreation Master Plan Study.

The results are based on an open "tell us what you want" feedback form on the town Parks and Recreation Master Plan study web site. The town has received about 600 responses. Most of these we believe are from the residents living in these golf communities as there have encouraged their residents to visit the site.

Mayor Winfield has pointed out that "This is not statistically valid information, but represents community input received to date. A statistically valid survey will be done as part of the assessment and may show different results."

Indeed, the results are so drastically different from the last survey done in 2014. This was before the the town purchased the golf courses. It was before the Vistoso Course ceased operation. Golf was at the bottom of the 30 or so needs at that time.

We know that these results are simply ludicrous. How could "Increased Programs and Services For Children" be low on the list?
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The Watchdog Report: Community Center Financials through November 2019

There has been no new information regarding Town’s finances since August. When I brought this to the Town Manager’s attention (via an email) the Council agenda was then amended to show the finances through November 2019. Apparently, the Finance Department was “strapped” and did not have the time to prepare the financial information.

It’s my impression that, until it was brought to the Town Manager’s attention, Ms. Jacobs had no priority to relinquish the Town’s financials. One wonders if this was due to the Town Council not making it a priority or if it was simply not a priority of Ms. Jacobs.

There is no good news to report
In the past, the one area where we were doing well was with the Town’s portion of the Community Center. However, through November 2019, The Town’s operations (fitness, recreation programs, non-Aquatic Center swimming) lost $34,827. For comparison, at this same time in fiscal 2018/19, the Town had profited $7,650.

YOUR sales tax revenues amounted to $956,766 which is $47,303 more than last year. The money spent for capital improvements remains at $20,835, without a penny being spent on ADA compliance. The transfers out remain at $148,810 which is to pay for an Energy Efficiency Bond.

Another shell game
The $148,810 transfer is interesting. The Town Manager reported to the Council that there was no debt service concerning the Community Center Fund (CCF). When I asked her what the $148,810 was for, she replied that it was a transfer to the “debt service fund” to pay for the bond allocated to the CCF. It seems that she wants the Council to believe that there are no bonds associated with the CCF, when in fact, there is one.

Troon Golf and Overlook Restaurant
Troon Golf has lost $1,031,624. (Revenues of $1,084,403 minus expenses of $2,116,027). The golf revenues (non-member play) were $353,357. This is $71,621 less than FY 2018/19. Non-member play allowed for 2,755 rounds on 45 holes of golf. The public course within 5 miles had 3,211 rounds on just 18 holes. That’s 456 more rounds. Why aren’t we doing better? After all, according to the members, the courses are in the “finest condition ever.” So why hasn’t Troon improved on these numbers?

Nov. 2019 YTD Financials
(Click to Enlarge)

Through 42% of the fiscal year, the CCF is $279,469 in the red. It doesn’t help that the Overlook lost another $3,519 bringing its total year-to-date losses to $57,942.

The Town is searching for a new golf operations management firm
The only good news is that the Town has issued a Request for Proposal (RFP) in an effort to find a new contractor to manage the Town’s golf operations. According to the RFP:

“The successful contractor will provide comprehensive services to improve the operation, maintenance, and financial performance of the Town’s two 18-hole golf courses, including food and beverage operations.”

LOVE will report a bit more on this Friday.
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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: Golf Revenue is Decreasing

First quarter golf revenues are down
The September 2019 financials have been posted. Despite the accolades from the Town Manager and the minority-3 council members, golf is still losing money and is now generating less revenue compared with the same time period in 2017 and 2018. First quarter revenues (July 1 through September 30) have shown:

• Through September 2017, golf revenues were $174,990
• Through September 2018, golf revenues were $219,812.
• Through September 2019, golf revenues are $168,451.

The factual numbers show that the golf revenues were $51,361 less than the prior year and $6,539 less than two years ago. If golf is doing so well, how can this happen?

In September 2019, there were 1,487 non-member rounds of golf. This compares with 1,529 rounds played at a public course within 5 miles of the El Con. Through September 30th, there were 239 various golf memberships. Troon’s goal for memberships was 319 but has been reduced to 275. If golf is doing so well, why have the membership expectations been lowered?

As an aside, the Overlook Restaurant lost $5,225, bringing the total losses through September to $35,706.

The Community Center is doing very well
As of September 30, 2019, the Town has made $8,926. Through September 2019, our sales tax subsidy is $556,520. Fiscal year 2018/19 that ended on June 30th, showed that the Town’s portion of this investment was a positive $57,747. Add to that the sales tax subsidy of $2,463,034 and you have over $2.5 million ($2,520,781).

Imagine there’s no golf
Imagine if all we had to worry about was the Community Center and not golf. With the Town support, coupled with the sales tax subsidy, we could make all the needed capital improvements to the Community Center including making it ADA compliant.

It is the golf portion of the investment that is the troll and it is this part of the investment that is dividing the Town.

In summary, golf revenues for the first quarter of this fiscal year are less than they were in 2018 and 2017. This should not surprise anybody. We have a 5-year history of this in Oro Valley.

According to the Town Manager we need to withdraw another $1.9 million from the General Fund and bond for an additional $3.2 million to provide for the needs of golf and the community center building. We cannot fund with “pay as you go” as long as we continue to maintain 36 holes of golf. This has been empirically evident by the history of the last five years.

The development scare tactic
The fear of development occurring if we don’t continue with 36 holes is a scare tactic. The HSL/Oro Valley purchase agreement states on page 5 that, “the Resort Course (Pusch Ridge) and the La Canada Course shall be deed restricted so that such courses are only used as golf courses, open space, or recreational amenities…” The Town cannot sell the property because State law mandates that any Town asset over $500,000 cannot be sold without a vote of the citizens.

18 holes won’t require additional funding
It’s true that if we decide to go with an 18-hole option (utilizing the Conquistador Course) we will lose about $900,000 in member dues and $100,000 in HOA contributions. However, this loss in revenue will be offset by the lower water needs, not to mention a reduced need for personnel, cart leases, and equipment. The water savings alone is over $400,000 and the Town currently budgets over $5 million for personnel, operations and maintenance, and equipment leases.

The Town has already withdrawn over $1.5 million from the General Fund and has bonded for energy efficiencies (a new irrigation pump on Conquistador and a new HVAC system at the Community Center). We do not need to borrow more money or withdraw more money when 18 holes can do a better job of sustaining without additional funding. If we are going to bond or borrow money from the General Fund, we should do it to pay our Public Service Retirement debt (ASPRS), or improve Steam Pump Ranch, or improve our parks, our Little League fields and our soccer fields. Let’s fulfill the needs of all our Citizens. It is not equitable to place so much focus on one particular group of citizens.
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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: July 2019 -- First month of the fiscal year

Below are the highlights of the Community Center financials for the first month of Fiscal Year 2019/20.

• The Community Center Fund lost $100,484 in July 2019.
• This is $65,148 more than it lost in July 2018.
• Troon lost $211,874.

• The golf membership dropped by two members from June 2019.
• July membership was down to 236.

• The total number of rounds played on the Town courses was 3,280 of which 253 were comped.

• The Overlook Restaurant lost $16,731.
• The good news is that the Community Center itself made $73,086.

The Community Center with its member dues, recreation programs, swim team/lessons, and rental income is making money. If the Community Center was all we had, we would not need the sales tax subsidy. If we were to continue with the sales tax subsidy and not worry about golf, we could make the capital improvements needed to update the 1980’s building and make it ADA accessible.

Although former councilmember Lou Waters continues to say, “I did not buy a golf course, I bought a community center,” the fact is that we continue to provide 45 holes of golf. And while the losses are less than in prior years, the losses continue, nonetheless.

In fact, Troon forecasts their losses to be $1,702,665 in FY 19/20. Oro Valley cannot and should not continue in this direction. Troon is forecasting member dues to reach $799,921 by the end of FY 19/20. This is $68,927 less than they forecasted in FY 18/19.
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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: Fiscal Year 2018-19 comes to a close

The FY 2018-19 financials are posted (July 1, 2018 through June 30, 2019)

The Good News
The mandated annual $120,000 pay back from the Community Center Fund (CCF) to the General Fund has been made. This is the first time since the purchase that this promise was fulfilled. (Unless you count the time that the Hiremath council borrowed $350,000 from the General Fund so they could pay $120,000 of that money back into the General Fund…aka the shell game.)

Troon’s losses for the fiscal year came to $1,674,187. This is the best they have done since the golf courses were opened in May 2015, but we are a far cry from patting them on the back.

The Bad News
Total Troon losses for the 50 months that we have owned this white elephant have totaled $9,320,693. Your sales tax subsidy for FY 2018/19 (which the Town calls income) totaled $2,463,034. Your tax subsidy since the purchase has totaled $9,530,901.

The Overlook Restaurant lost $113,917 in FY 2018/19. That is more than they lost in FY 2017/18 ($96,100). Why is this restaurant still open?

Is a Members Only Golf Course reasonable?
Do the golf members deserve their own course? As of June 30th there were 238 members. Membership dues accounted for $761,764. The money the members contributed does not come close to allowing for their own dedicated course.

If we did not subsidize the “member’s course,” we could provide for capital improvements. We could have the Community Center ADA compliant. We would not have to bond. We would not have to depend on HOA’s to provide financial assistance.

We can have 18 holes of municipal golf and convert the remaining 18 holes to green space to avoid any potential loss in property values for those living along the golf course. Then we can start making capital improvements and have money for park improvements.

The Watchdog Report: April 2019 Community Center Financials

The Community Center Fund (CCF) ended April 2019 with a positive balance of $698,301. Although a positive balance of this magnitude is a good sign, there are a lot of promised obligations that need to be fulfilled…and they’re not being fulfilled.

What happened to ADA compliance?
We have owned this property since May 2015 and it is still not ADA compliant. Why isn’t the Town Manager funding an elevator for the Community Center? Does anyone care about our citizens who are disabled and currently have to enter the building through the loading dock? What happened to the funding for ADA and Code Compliance and Life Safety Issues that was shown during the Power Point presentation in December 2014?

ADA and Code Compliance Life Safety Issues

FY 2014/15         $381,000
FY 2015/16         $445,000
FY 2016/17         $69,000
FY 2017/18         $142,000
FY 2018/19         $106,000
TOTAL              $1,143,000

Greg Caton (Town Manager in 2014) promised that between FY 2014/15 and FY 2018/19 that the Town would spend $1,143,000 to remedy these issues. Fiscal year 2018/19 ends on June 30th and to-date the Town has spent ZERO on ADA compliance.

What happened to paying back the $1.2 million dollar loan?
In 2015 the Town Council borrowed $1.2M from the General Fund to start the Community Center Fund with a promise to pay back $120,000 per year for 10 years. There has been no transfer of the promised annual $120,000 from the CCF to the General Fund.

Gains and Losses
Troon lost $85,220 in April 2019, bringing their losses to date to $1,267,303.

The Overlook lost $2,232 in April bringing its total losses so far this fiscal year to $89,679. Since the Overlook opened in 2015 it has lost $556,141. Of interest is that four years into this endeavor they are still losing more than what they've budgeted to lose. Budgeted losses YTD were $58,712. Actual losses YTD are $89,679. (Difference of $30,967).

The Town part of the investment (fitness, recreation, swimming) made a little over $125,000 as of April 2019. There is nothing wrong with the Community Center part of the investment; it is golf that continues to be a financial drain on the Town. So far this fiscal year your sales tax revenues dedicated to the Community Center and Golf amount to $2,033,576 (as of April 2019).

Looking ahead
I recently submitted a Freedom of Information request asking for the number of employees assigned to maintain the golf courses, including supervisors and mechanics, and the total water usage for 36 holes (either in gallons or acre feet). The Town responded that they did not have the requested documents because these items are not broken down individually. I’m not sure if this is stonewalling or irresponsible management. How can the Town not know how much water is utilized or how many employees are utilized for golf maintenance? I am trying again with a revised submittal.

I am currently working on a plan for an 18-hole, strictly municipal model for golf. Town Manager, Mary Jacobs, seems to be leaning towards the 36-hole model if the adjacent HOA’s supplement the Town via increased HOA dues. The recently passed budget still includes the Overlook and the 36-hole model. One wonders what it will take to get the Town Manager to understand that the current model for golf is not working.
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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: March 2019 Financials, 75% of the way through FY 2018/19

When one first looks at the Community Center Fund balances for March 2019, one might be impressed and think that we are working ourselves out of this mess. After all, they show a surplus of $565,372. However, the balance sheet also shows that the annual $120,000 transfer to the General Fund has not been accomplished, and there is still $46,669 in capital outlay to be spent.

March usually marks the end of the prime months for golf, but with April and May temperatures being cooler than normal (it’s reportedly been 8 degrees cooler than normal), we might actually see better golf revenues this spring than in years past.

What is interesting is that when you compare March 2019 to March 2018, you see that the total revenues were $94,231 higher in 2018, but the expenditures were $434,143 lower in 2019. Your sales tax revenues totaled $1,792,890 in 2019, which is $78,901 more than 2018.

The Bad News
Even though Troon states that they made $30,410 in March 2019, their total losses to date are $209,773 higher than in 2018. Member dues were $15,003 lower in 2019 vs. 2018. Golf revenues were $108,338 less than budgeted and Troon is still forecasting to lose $1,775,622 in fiscal 2018/19.

The Town spent only $4,281 out of a promised $50,950 in Capital outlay.

The Good News
The number of rounds of non-member play for March was 5,457 (on 45 holes).  However, another course within 5 miles had 5,165 rounds on just 18 holes.

Thanks to the very rainy winter, Troon’s utility expenses have lowered.

The Overlook Restaurant actually made $771 in March. Their total losses for the fiscal year (to date) are currently $87,447.

The Town has made $73,467 through their programs (tennis, fitness, recreation). Maybe the Town can start sharing in the utility costs. (For more information on why the Town has paid ZERO in utilities since the Community Center opened in May 2015, please read our January Watchdog Report, under the subheading of “Clever Bookkeeping.”)

All things considered, March 2019 was not a bad month. We will see what the remainder of the year brings and if the Town Council will be able to transfer the Hiremath council’s promised $120,000 annual loan payment back to the General Fund.

March Financials - Click to enlarge

Overlook Restaurant March Financials

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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: The January Financials – Suspicions Confirmed

January 2019 was a good month. However, I discovered something questionable and my suspicions were confirmed by the Town. (This is discussed under “Clever Bookkeeping” below).

The good news is that the Community Center Fund (CCF) ended January 2019 with a positive balance of $32,682. But before you start celebrating…remember that:

• January is a prime month for golf
• The Town still needs to transfer the $120,000 annual repayment to the General Fund (promised by the Hiremath council in 2015 when they borrowed $1.2 million from the General Fund to start the Community Center Fund with a promise to pay back $120,000 per year.)
• The Community Center is still not ADA compliant
• The town has spent only $2,653 of the promised $50,950 in capital improvements.

As of January 31, 2019, the contracted revenues (Troon) were $1,673,938, while the contracted expenditures were $2,874,342. This means that Troon has lost $1,200,404 since July 1, 2018 (the beginning of the fiscal year).

The Town’s revenues were $511,800 while their expenditures were $475,423 resulting in a profit of $36,377 since July 2018.

In January 2019, there were 3,762 non-member rounds of golf played on 45 holes, while at a public course within 5 miles there were 3,764 rounds played on 18 holes. The golf membership was 233, however, there were 6 members who did not pay dues in January due to medical leave and those over 90 not being required to pay dues.

The Overlook lost $11,224 in January, bringing the total loss for the fiscal year to $77,348.

Clever Bookkeeping
Since the establishment of the CCF in May 2015, Troon has paid $4,905,941 in utility expenses and the Town has paid ZERO. This is odd when you consider that:

• The Town’s portion of the Community Center includes a heated swimming pool, lighted tennis courts, and HVAC requirements for the fitness and recreation center.

• Troon’s portion includes the golf courses, the pro shop, and the Overlook Restaurant. However, all utility costs have been allocated to Troon.

I asked the Town why Troon was responsible for the Town’s portion of the utility expenses. They responded:

“The decision was made upon acquisition to account for all utilities in the Troon budget because the bulk of the utilities costs (water for the golf courses) was a Troon expense, and the building was not equipped with separate meters to clearly measure the Town’s portion of utilities versus Troon’s portion.”

This was a decision made by former Town Manager, Greg Caton and Finance Director, Stacy Lemos upon the purchase of the property.

Granted, water is a large expense for golf, but there is also water utilized in the two swimming pools and the shower facilities.

The Town goes on to further justify this unfair allocation:

“Conversely, the Troon budget also does not allocate a portion of golf member dues (collected by Troon) to the Town to recognize the fact that golf members have access to the Town’s fitness facilities as Premium members.”

However, the Town fails to mention that the Premium Fitness and Tennis members also have all the benefits regarding food and beverage and merchandise discounts, but Troon receives no portion of these dollars.

Why did the Town rig the financials this way?
We all know that whatever they do, golf is going to lose money. Was this “clever” bookkeeping done because this might be a way to show that the purchase was not a total loss if they can show that the Community Center/Fitness/Tennis portion is making money?

Although the Town’s expenses vs. revenues are showing a positive trend (with recent financials indicating that the Town has made a $36,377 profit through January 2019) is this a valid number when it does not include utility costs accrued by the Town?

Utilities for this fiscal year show:
Water $917,132
Electric and Gas $301,720
Waste Removal and Cable Service $38,673
TOTAL $1,257,525

Given these numbers, the Town’s true expenditures for the fiscal year would be considerably more than the $475,423 listed above and their “profit” of $36,377 would be non-existent. There would, in fact, be a negative balance.

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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Watchdog Report: Half way through the Fiscal Year

The December 2018 financials have been posted. This marks the halfway point of the fiscal year (July 1 through December 31). This also gives us an indication of the success of the holiday shopping season.

In December 2017, the sales tax revenues posted in the Community Center Fund (CCF) showed a gain of $206,132. The gain in December 2018 was $224,773. This is a gain of $18,641 in 2018 holiday shopping sales tax revenues. That’s the good news.

The bad news? Remember that former Town Manager Greg Caton and former Mayor Hiremath told us that the sales tax increase would bring in revenues of $2 million per year and that this would sustain the CCF. The sales tax revenues are projected to be $2,384,558 for FY 2018/19 but the CCF ended December 2018 at $221,389 in the RED. So much for Councilmember Solomon’s claim that we are “breaking even.”

December is one of the prime months for golf. The courses posted 2,748 non-member rounds on 45 holes of golf. To put this in perspective, a public golf course within 5 miles of the El Con posted 3,320 rounds on 18 holes of golf. That is 612 more rounds on 27 less available holes.

Mary had a little…plan
As of December 31, 2018, Troon has lost $1,175,440 of your money. We have shown that, from the start, Troon has done nothing but lose money since the golf courses opened in May 2015, yet Town Manager, Mary Jacobs, extended their contract an additional 6 months.

One of Ms. Jacobs’ essential functions is to: “Provide oversight and assist Departmental Directors in analysis and resolution of problems…” Another function is to “Respond to citizen complaints.” If you agree that extending the Troon contract was in conflict with one of her essential functions, you may write her at mjacobs@orovalleyaz.gov. If you do, please inform LOVE of her response.

In other good news/bad news

With all the rain, the frosts, and even the recent snow we’ve had this winter, the utility (water) costs for the golf courses should be reduced. However, this wet weather will also adversely affect the golf revenues which will be revealed in upcoming Town reports.

Another interesting number on the December report was a capital outlay of $2,633. When I asked the Town what this was for, the reply was, “minor reconfiguration of the parks administrative office.” Apparently this is more important than making the Community Center facility ADA compliant.

There was also a transfer out of the CCF of $133,999 to the Debt Service Fund to pay for principal and interest on the Energy Efficiency Bond. You see, we already have one bond dedicated to the CCF.

The Overlook lost $4,059 in December 2018, bringing the total losses to date $66,384.

Ending on a positive note, the Community Center (fitness, tennis, etc.) has made $8,548 through December 2018.

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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

Town’s Golf Investment priority continues to run “off course.”

Below are the financial statistics for the Community Center and Golf since its inception in May 2015 through the last available financials in November 2018 (four months into the fiscal year).

Purchase Price

Total - $1,000,000

Total transfers from the General Fund to the Community Center Fund (CCF)

FY 2014/15 $1.2 million to start the CCF Fund
FY 2016/17 $350,000

Total Transfers - $1,550,000

Total sales tax revenues from the dedicated sales tax increase to fund the CCF

FY 2014/15 - $506,710
FY 2015/16 - $2,030,750
FY 2016/17 - $2,199,466
FY 2017/18 - $2,330,941
FY 2018/19 - $906,463 (through Nov. 2018)

Total Sales Taxes - $7,974,330

Grand Total of tax dollars funneled to the Community Center/Golf = $10,524,330.

That’s $10 million dollars of the people’s money and the Community Center is still not ADA compliant. This is your money that could have built a new, state-of-the-art Community Center. In addition, the sales tax increase could have been repealed after the new Community Center was built.

Total Troon losses – Forecasted vs. Actual

FY 2014/15 – Lost $1,112,252 (Opened for only two months)
FY 2015/16 - Forecasted - $1,518,343; Lost $2,567,385 -- (off by $1,049,042)
FY 2016/17 - Forecasted - $1,534,505: Lost $2,512,938 -- (off by $978,433)
FY 2017/18 - Forecasted - $1,822,941; Lost $1,993,040 -- (off by $170,099)
FY 2018/19 – Forecasted (see below); Lost $1,102,243 (through Nov. 2018)

In FY 2018/19, Troon initially forecasted losses to be $1,893,595. However, they updated their forecast to $1,936,101. We are only 4 months into the fiscal year, and they have already lost $1.1 million.

Total Troon losses - $9,287,858 and counting

Food and beverage losses (Overlook Restaurant)

FY 2014/15 – Unknown. (Opened for only two months)
FY 2015/16 - $255,570
FY 2016/17 - $114,792
FY 2017/18 - $96,100
FY 2018/19 - $62,325 (through Nov. 2018)

Total restaurant losses - $528,787

Member Dues

FY 2014/15 – $201,531
FY 2015/16 - $876,133
FY 2016/17 - $725,611
FY 2017/18 - $784,071
FY 2018/19 - $284,968 (through Nov. 2018)

Total dues - $2,872,314

The Town Council needs to ask staff the following questions:

• Why is the facility still not ADA compliant after almost four years of operations?
• Why are the citizens still subsidizing the Overlook Restaurant?
• Why is the staff still supporting the 45-hole golf model?
• Why is the staff still supporting a dedicated golf course for only 226 members?

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Editor's Note: We originally posted incorrect numbers for Troon losses in FY 17/18. We have corrected the information.

The Watchdog Report: November 2018

The Town is doing something different with the monthly financials
During the Hiremath regime, the financials were always on the Consent Agenda and rarely pulled for discussion. Now, with a new council majority, Town Manager, Mary Jacobs decided that staff will now give a brief presentation of the financials.  This will allow for greater transparency and also allow an opportunity for Q&A between the Town Council and staff.  One wonders why this was not done during the Hiremath years.

Financials through November 2018
The CCF ended November 2018 $321,761 in the red. Given the fact that the CCF started the fiscal year (July 1st) at $71,563 in the red, the total losses for the CCF are $393,324. Will staff claim that this trend is normal?

Through November 2018, Troon’s revenues were $1,087,548. The bad news is that this is $138,365 less than November 2017. Troon’s expenses were $2,189,791. The good news is that this is $178,410 less than the same time last year.

The Overlook Restaurant lost $15,423 in November 2018. That is $4,942 more than they lost last November. The total losses at the Overlook so far this fiscal year are $62,325.

Statistics
The number of non-member rounds played on the Town’s courses totaled 3,034 on 45 holes available. For comparison, a public course within 5 miles totaled 3,788 rounds on 18 holes available.

At the start of the fiscal year (July 1st), Troon forecasted their losses to be $1,893,595. At 41% of the way through the fiscal year, Troon has already lost $1,102,243. Historically Troon has not come close to their projected losses, yet the Town Manager saw fit to extend their contract another 6 months.

The current model is not working

We have a new Council majority and the Town Manager has briefed them on what she thinks they need to know. The record of the disastrous purchase of the HSL properties is clear. We have 42 months of empirical evidence that something has to change.

YOUR sales tax revenues so far this fiscal year (July 1st through November 30th) total $903,463. Even with those revenues, the CCF is over $390,000 in the hole. The current model is not working, so I do not understand why Mary Jacobs insists on maintaining the current model of 45 holes of golf.

The town has scheduled two Town Council Community Center/Golf Study Sessions.   The first one took place on Monday evening (January 28).  The second one is scheduled for Wednesday, February 20th.

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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

Our Hope For Oro Valley As We Begin 2019

Why the heartburn about the Moore/La Canada intersection?
According to an independent study commissioned by the town, this intersection does not warrant a traffic signal until 2026. So, what's the rush to put in a traffic light or a rotary? Three things have changed since the study was done: Tangerine is open and the two new schools are in place. Update the warrant analysis. Find out if and when a traffic control is warranted. Make the decision based on fresh facts. Why not spend the $1 million at Steam Pump Ranch or on Parks instead of getting the Town all inflamed over a subject that is not warranted?
Why the heartburn over the proposed state lands annexation?

Every public meeting indicates that the citizens want no part of this annexation. The Town’s Planning and Zoning Administrator has told us publicly that, in the long run, this annexation will cost Oro Valley. There are concerns about how the proposed land is going to be zoned. There is concern about the loss of the desert and wildlife, the water usage, and the lack of compliance to the General Plan.

Why the heartburn over the town run Overlook restaurant?
This is a business that is in direct competition with private enterprises. This is a business that has continued to lose money. The Town Manager insists on keeping it open to feed the golfers. Do we really need a full service restaurant to feed golfers when a beverage cart will suffice?

Why the heartburn over 45 holes of golf?
The contracted golf study told us that 27 holes was the best plan, the Town Manager insists on 36 holes. Common sense and empirical losses indicate otherwise. This drain, created by our ex-Mayor, and ex-Council people Hornat, Snider, and Waters, with the assistance of current Council members Solomon, Pina, and Rodman must end SOON. Hopefully this answer will come about before the end of 2019.

Why the heartburn over the direction the voters want Oro Valley to take?
Just a few months ago, voters ousted Hiremath, Snider, Waters, and Hornat. They ousted them because residents were tired of the developer driven decisions; because they were tired of the lack of  decision making transparency; because they wanted their views both heard and reflected in council decisions; and because they wanted conformance to the General Plan. The mandate was clear. Now it's time to move forward and get the job done.
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The Watchdog Report: October 2018

The October 2018 financials are posted and reveals further proof of the fiscal irresponsibility of the Hiremath-Hornat-Snider-Waters council…and Pina, Rodman, and Solomon did nothing to stop it.

For those of you who are new to the LOVE blog, the Community Center Fund (CCF) is the fund that was set up to collect the revenues (including the dedicated half cent sales tax increase), and pay for all the Community Center expenses, including capital improvements.

As of October 31, 2018, the CCF is $460,575 in the red. This is what former mayor Hiremath and his sycophants call “breaking even.”

First four months of the fiscal year (July 1 – October 31)
Since July 1st, The Overlook Restaurant has lost $46,901. For comparison, the entire Community Center has lost only $15,903 since July 1st. The Overlook lost $13,355 in October alone.

• As of October 2017, Troon’s revenues were $924,875.
• As of October 2018, Troon’s revenues were $831,954. ($92,921 less than prior year)
• The good news is that Troon’s expenditures were $134,247 less in October 2018 compared to October 2017 and our sales tax revenues were $34,559 more.

When comparing FY 2017/18 to FY 2018/19, as of October 31st, Troon’s payroll increased $54,400, employee benefits increased $6,308, cart leases increased $3,759, and utilities decreased $120,074. Membership dues decreased $26,345. This closes the books on the Hiremath/HSL affair.

Since the purchase of the Community Center and Golf Courses in May 2015:
• FY 2014/15, Troon lost - $612,094
• FY 2015/16, Troon lost - $2,567,385
• FY 2016/17, Troon lost - $2,512,938
• FY 2017/18, Troon lost - $1,993,040
• So far in FY 2018/19, Troon has lost - $936,196

TOTAL LOSS OF $8,621,653.

The total of your sales tax revenues dedicated to this ill-conceived plan are $7,783,147, plus $1,550,500 that the Hiremath council transferred from the General Fund to assist in paying for this disaster. Just think of the parks and other citizen benefits we could have had with the combined monies of the General fund donation and the sales tax revenues ($9,333,647). Instead this all went to make Humberto Lopez (HSL Properties) happy at your expense.

Where do we go from here?
The Town Manager has already stated that she desires to continue with 36 holes of golf, completely disregarding the recommendations of the $50,000 golf study. Apparently, the Town Manager will not be the person to lead us out of this quagmire.

Oro Valley voters recently elected a new Mayor and three Councilmembers. Although I will continue to document this debacle, the new council majority completely understands the Town’s need to correct this problem and we should allow them some time to formulate a game plan to at least minimize the losses until a permanent solution can be found. I do not expect to see any massive changes in the immediate future, but I do expect to see some positive changes.

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Mike Zinkin has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

Jacobs To Hear Your Concerns on Moore and LaCanada Traffic Control

Town Manager Jacobs issues a monthly to council. The report is now available on line. The following "items in quote" are from the November report.

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Jacobs to hear your thoughts on traffic control at Moore and LaCanada
"The Town Engineer and the internal Traffic Safety Committee are recommending to me [Jacobs] that the Town install a roundabout rather than a traffic signal at the intersection of Moore and La Canada. Since there was significant interest in the intersection at a neighborhood meeting held earlier this year, I will hold a final neighborhood meeting on Monday, December 3 to personally listen to issues and concerns prior to making a decision." The budget for this project is $1million.

Strategic Planning in store for council and executive leadership team
"The Town received eight responses from firms interested in providing strategic planning services to the new Council and Executive Leadership Team. The proposals are under review and we anticipate awarding a contract to the selected firm later this month."

Economic development creation plan in progress
"The CED Director is working with the Town Manager to finalize an Economic Development Strategy outlining specific strategies and tactics on how to retain, expand and attract new primary and service sector investment and job creation in Oro Valley. The finalized report will be forwarded to the Town Council in the near future."

Community Center getting facelift
"The Community Center lobby will have a facelift in November. New carpet and front desk reconfiguration will result in improved aesthetics, improved customer service flow and improved staff security and safety. Minor disruptions on Nov 20-21, but members will be notified well in advance"

Overlook restaurant still in business
"The Overlook restaurant will continue to facilitate the very popular Family Fish Fry, Second Saturday, Date Night and Third Thursday Pasta and Pizza. New fall hours went into effect on October 1. The Overlook will serve lunch daily from 10 a.m.-4 p.m. The annual Thanksgiving Holiday Buffet will be served on Thursday, November 22, from 1-5 p.m."
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