Guest View: Mike Zinkin ~ Oro Valley government needs to come out of the shadows

When will our elected government come out of the shadow of Town Manager, Mary Jacobs? Have you noticed how many Executive Sessions there have been? Why are the lawyers hiding behind the cloak of an Executive Session to brief the Council? Why not do public business in public?

Here are a few examples:

The new golf management contract
The Town placed a “request for proposal” for a golf management contract. Ms. Jacobs is correct in that the Council is now out of the picture as far as the selection is concerned (that is why we have a Contract Officer). However, the Council should still be involved in the final wording and approval of the contract.

Has anybody seen the golf management contract on an agenda? The mayor stated that effective 10/1/20, the golf management team would be responsible for all food and beverage and that the Town would no longer subsidize it. Did this happen?

In a recent communication with the Town, I am told that “The golf management contractor is responsible for food and beverage operations, including losses it experiences.” The inception date was not included in the email so we must assume that it began on 10/1/20.

The MOU between HSL and the Town regarding the leasing of the Pusch Ridge course
The Council came out of Executive Session on September 23rd and publicly voted to continue the Memorandum of Understanding (MOU) from 10/1/20 to 1/31/21. What MOU? Has anybody seen the MOU? Shouldn’t the citizens have access to this information, especially those living adjacent to the Pusch Ridge course?

The new golf management company (Antares) has a different way of providing their numbers
Look at the financials at right. Where are the utility expenses? Are the cart fees exclusive of the trail fees that the members pay? What exactly is included in “Other Expenses” of $12,590?

There is something suspicious when comparing the golf financials from Troon vs. Antares. Troon lost $422,049 from July 1 through August 31, 2019. Antares lost only $291,711 from July 1 through August 31, 2020 despite temps of 108 degrees every day and bad air quality from the Tucson and California wildfires. This is a $130,338 dollar difference. Can Antares be that much better than Troon, whom we were originally told was “the Rolex of golf management companies”?

Covert operations
The Town Council needs to govern in public. The Town’s lawyers need to express their opinions in public. The tax-paying citizens need to see and hear what the Town Council is seeing and hearing. Government should not be a secret.
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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: Currently available golf statistics for Fiscal Year 2019/20

Golf rounds and revenues released but dedicated sales tax revenues not yet available
Due to sales tax revenues being an important part of the Community Center Fund (CCF) financials, we will not know how the CCF performed in FY 2019/20 until late September.

We do know how well the golf courses performed during FY 2019/20 because we now have the amount of total rounds. Keep in mind that Oro Valley golf includes 45 holes of golf (36 holes when the 9-hole Pusch Ridge course is closed) while the other courses we are comparing it to contain only 18 holes of golf. Even when the Pusch Ridge course is closed, we still have a minimum responsibility to maintain it. My assumption is that it is much cheaper to maintain 18 holes than 45 holes.

During FY 2019/20, Oro Valley’s courses had 64,665 total rounds. This includes 24,318 member rounds, 35,479 non-member rounds, and 4,868 complimentary rounds.

Tucson golf courses continue to outperform Oro Valley courses
Within 5 miles of the Oro Valley courses, one municipal course, despite being closed for 6 weeks, had 33,000 rounds on 18 holes, which is nearly equivalent to what Oro Valley had on 36 holes. The other course had 62,573 total rounds which is 56.7% MORE than what we did when comparing non-member rounds.

If we compare 36 holes vs. 36 holes, there is a 36-hole complex in Tucson (Randolph and Del Urich) which could be a similar comparison. The Randolph complex made a $740,848 PROFIT. Although Tucson lost money on two of their other golf courses, that loss was covered by the profit they made on their three other courses.  Tucson ended the fiscal year with a $884,277 PROFIT. To quote a Tucson Councilman “…total rounds are up citywide by over 8% and net income is $250K over budget. One - maybe the only - thing positive about COVID.”

While we don’t have the final monetary numbers for the Oro Valley courses, what can we expect when 18-hole courses around us are outperforming our 45 holes? (Remember our total number of 64,000+ rounds includes 4,800+ free rounds, and 24,300+ member rounds.)

Why be a member?
As of May 30, 2020, the members paid $1,005,420 in dues and trail fees and played 22,315 rounds. This equates to $45.05/round (1,005,420 divided by 22,315).

Non-members accounted for $1,326,148 in golf revenues and played 31,926 rounds. This equates to $41.53/round.

It gets even worse during July. The new management company, Billy Casper Golf, is complicating the numbers. They report that in July 2020, there were 4,070 non-member rounds. This is up from 1,740 rounds in July 2019 for an increase of 135%.  If this is correct, then apparently Troon wasn't the Rolex of golf management companies after all. 

However, 1,362 of those rounds were played on the members course (big deal) and those rounds produced $28,287 in income. This means that if a non-member was lucky enough to play on the members course, it cost them only $20.77/round.

That leaves 2,708 non-member rounds that were played on the other course. The Town does not tell us what the income was on the non-member course.

Why all the smoke and mirrors?
Why can’t the Town just report the number of non-member rounds and the income that those rounds produced? The bottom line is that $20.77/round will not subsidize a 36-hole operation even with additional member income. Are we about to enter another fiscal year with million dollar losses?

Summary
• The 18-hole courses within 5 miles of us outperformed us on number of rounds.
• As of July 31, 2020 it is cheaper to play as a non-member than as a member in Oro Valley.
• The City of Tucson made a profit of $884,277 on their municipal golf courses.

A word of caution
The FY 2020/21 budget includes $1.1 million for irrigation improvements on the Conquistador course. The Council has mandated a “pay as you go” model. The Town should not contract for the work until there is a $1.1 million positive balance in the CCF after all obligations are paid (e.g. $120,000 annual payment back to the General Fund and $148,000 to pay for the Energy Efficiency Bond).

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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: Community Center Financials, April 2020

The trends are still disappointing
The April financials are posted and, once again, the trend is not going the way the Hiremath/Solomon/Rodman crew had predicted. Through April 2020, the Community Center Fund (CCF) has a positive balance of $512,009. However, that’s $257,736 less than the same time last year when the CCF had a positive balance of $769,745.

Of the $512,009 balance, the Town still has not funded $79,407 of budgeted capital improvements. The Town is now forecasting that the CCF will end the fiscal year with a loss of $17,223. This is the same fund that is proposed to fund $800,000 in capital improvements in FY 2020/21. Where is that $800,000 going to come from?

Troon Golf lost more this April than last April
Troon lost $42,184 more in April 2020 than they did in April 2019. This is remarkable considering that the Crooked Tree Golf Course was closed in April 2020. The Arizona Daily Star ran an article on how the Covid pandemic was a boon for Tucson golf. Apparently, the players that had been golfing at Crooked Tree decided to utilize Tucson City courses rather than the Oro Valley courses.

In April 2020, there were 909 fewer non-member rounds of play than in April 2019. To further illustrate my point, another golf course within 5 miles of the Oro Valley courses had 6,834 rounds of non-member play on 18 holes, while the Oro Valley courses had 2,684 non-member rounds on 45 holes. Do you see a trend here?

Golf member dues and HOA contributions are not enough
The golf members (all 260 of them) have contributed $908,967 towards their private course. If you add the additional $125,000 contribution from the HOA’s along the golf courses, there still is not enough money to fully support an 18-hole golf course.

The 36-hole “pay as you go” option is not working. The revenue produced by the members and the HOA’s is not nearly enough. The revenue trends are going in the wrong direction.

Hiremath’s pie-in-the-sky predictions were wrong
YOUR sales tax support was $2,148,164 through April 2020 which is $114,788 more than the same time frame in 2019, yet the Town is still forecasting that the CCF will end the fiscal year (ends June 30th) with a $17,223 deficit.

That means that this investment will NOT earn a profit (or even break even) after 5 years as promised by former Mayor Hiremath during the December 17, 2014 council meeting when he said:

“We’re telling you that in the first two years, we’re going to lose major money on it, but…in year 4 or 5 or 6 are we going to project a profit? You’re darn right we are.”

Gee, if only someone had tried to warn him.  It must be those darn "headwinds."  Wink-wink.

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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: August 2019 financials

The evidence continues to mount that the 36-hole option is not sustainable without additional financing.
The financials for August 2019 are posted and Troon lost $422,049. The Community portion of our investment made $27,508. Of interest is that there was a capital outlay of $2,347 for benches on the tennis courts.

The total rounds of non-member golf for August 2018 were 1,774 on 36 holes of available golf. For comparison, a public course within 5 miles of the Town-owned courses had 2,626 rounds of play on 18 holes, which is 67% higher than what Troon could provide.

Keep in mind that the goal is for 40,000 rounds of play for each course (or 80,000 rounds total for both 18-hole courses.) To accomplish this, there needs to be an average of 3,333 rounds of golf played per course per month or 6,666 total rounds per month for both courses. In fiscal year 2018/19, there was a total of only 33,914 rounds of outside play. This is more proof that an 18-hole option can be sustainable, but a 36-hole option is not.

Golf membership expectations have declined
Another goal that has been established is for the golf membership to reach 275. This has been revised from the goal of 318 members that was set in 2015. As of the end of August 2019, there were still only 237 members.

Only $106,500 budgeted for capital improvements for the entire year What is troubling is that the Town Manager has budgeted only $106,500 for capital outlay for the entire fiscal year. There are NO plans to make the facility ADA compliant. The “scheduled” capital improvements are for:

• more benches for the tennis courts
• replace existing strength machines
• replacing some mats and weights
• purchasing outdoor chairs and benches
• and $90,000 for tennis court improvements

Ms. Jacobs would like to close the Overlook (which lost $13,378 in August 2019) and move it downstairs, and fix the irrigation problems on the courses, along with other needed improvements. How will all of this be accomplished with $106,500?

Town leans towards financing over pay-as-you-go
This is why Jacobs cannot allow for the “pay as you go” option that Mayor Winfield proposed at the October 2nd meeting. In a 4-3 vote (with Councilmember Jones-Ivey voting along with Solomon, Rodman, and Pina) the “pay as you go” plan was removed, and staff was instructed to come back with options for financing the capital improvements. The term “financing” implies that one has to borrow to pay for the needed improvements. We will wait and see what financial options Ms. Jacobs brings to the table (Bonding? Borrowing from the General Fund?) and whether the Council will allow for her options to become reality.

Right now, the golf investment is counting on $125,000 from the HOA’s that align the courses because the investment cannot stand on its own merit. Don’t be surprised if Ms. Jacobs tries to combine the Community Center Fund into the General Fund, like she tried to do earlier this year. Moving the CCF into the General Fund will remove all transparency and hide its financial status.

Community Center Fund - August 2019

Troon Cash Flow

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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.

Summary: Oro Valley Town Council Special Session – July 24, 2019 – Part 3. Arguments in support of closing the golf courses.

Losses are just shy of $9 million through May 2019
• I’ve read the 286 pages of letters submitted to the town by residents of the golf communities, primarily Canada Hills. Their unwavering opinion is that all 36 holes must be retained. In my observation, that’s not the opinion of thousands of other Oro Valley residents who find that unreasonable.

The Town’s original revenue projections indicated that the half-cent sales tax and the Community Center Fund would cover ALL expenses including capital improvements. Troon projected golf losses of $2M through FY 2017/18 with a slightly positive return starting in FY 2018/19. Instead, the losses are just shy of $9M through May 2019. Yet now we’re supposed to believe that golf will only require $1M in annual sales tax support if the Town retains 36 holes and if they spend almost $4M to replace the irrigation system and refurbish holes as part of the $6M bond package?

Two key points in the National Golf Foundation Study were quite clear:

(1) The financial condition of Oro Valley’s golf operation is considerably worse than most public sector golf operations in the U.S. where 67% of municipal golf course operations are able to cover their expenses.

(2) There are far fewer permanent households and resident golfers in the greater Tucson markets to support each 18 holes of golf in the area.

While I understand the concerns of those that paid premium prices for golf course views, there are many others in town who also paid higher premiums and lost their views due to the rampant development in town.

Golf is in decline, water is a precious resource, and real estate law does not guarantee property values
• I play golf but I cannot afford to live in a golf community. The Town of Oro Valley purchased the golf courses despite a large segment of the community voicing dissent. The face of our Town government has changed in large part due to that decision. The revenue and expense projections have proven to be faulty and continued support of the golf properties are a drain on the town budget with taxpayer money that would be better spent on services enjoyed by the entire community…Golf is in decline, water is a precious resource, and real estate law does not guarantee property values…There are many other golf options available. I use them. Those who want to play golf can use those options just like I do.

Troon's forecasts are not accurate and are not to be relied upon
• The purpose of a forecast is to as accurately as possible, project the future both in revenues and in costs so that when management makes a strategic decision, they have the best basis for doing so. In witnessing the Town’s forecast for the 36-hole option, I don't believe it does that. The town implies that the 36-hole option will cost only $11M in the future 10-year period. It understates the cost and misrepresents the losses that the town will incur.

In December 2014, the same forecasters, Troon and the town, said that we would lose $2M before turning golf profitable this year. Through May of this year, we have lost over $8.8M in golf and restaurant operations and are budgeted to lose more than $1.8M this year. That will be $10.5M in operating losses in 5 years.

The Town forecast conveniently picks a period of time 3 years in the future. This occurs after repairs costing us another $4M are completed and provides a best case hypothetical of what the 36 holes could look like if everything went right. And that hypothetical said that we will still lose $1M a year…I find that very unlikely.

The forecast conveniently ignores over $5M in losses for the next 3 years - the $1.8M this year and the several millions that we will lose while we’re restructuring the courses. The town says that since the irrigation repairs will be so disruptive, the losses can’t be estimated. Troon’s wage and benefit inflation increased $100,000 over the past year. A first look by the Budget & Finance Commission showed that the 36-hole option might cost $30M over the same period.

The Town’s projection indicates that the 36-hole option is probably the best, and in my opinion, it’s the worst. For the council to decide on what makes the best decision, the financial basis of that must be based on accurate forecasts, and the town and Troon have shown in the past that their forecasts are not accurate and are not to be relied on.

I know that decision-making can be difficult, especially for complex and controversial issues like this. For 6 years before I retired, I was the Director of Planning for the largest park and recreation district in (it sounded like he said Oregon)… It was generally recognized that almost all facilities and programs required some level of subsidy. So it’s not surprising to me that golf courses would have to be subsidized for the long-term.

The question is, how much subsidy should they receive from the town relative to other recreational facilities and programs that the town provides? It seems to me that subsidies should be highest for facilities and activities that are used by the greatest number of town residents such as parks, ball fields, and multi-use paths.

A Flash-Vote survey by the town earlier this year showed that multi-use paths were the recreational facilities most used by the town residents. Although I’m not a golfer, I’m not against subsidies for a golf operation, I just don’t think that golf should be subsidized to the detriment of other parks and recreation facilities and programs.

Of the options under consideration, I think retaining an 18-hole public golf course with conversion of the other 18 holes to well-manicured park space and pathways would be your best choice unless other parties, such as the HOAs, are also willing to participate in subsidizing a 36-hole operation.

Listen to Anna Clark’s speech below. A partial transcript appears below the video.

One percent of the population is utilizing 75% of the Parks and Rec Budget
• Golf alone consumes about 75% of the Parks and Recreation budget. What about the rest of us who don’t golf? I have 4 sons who play field sports. Oro Valley desperately needs more soccer and baseball fields to accommodate the many other families with children who play sports….At Naranja Park, because of the lack of field space for kids, soccer players of all ages are forced to practice on the same field at the same time. This is a recipe for disaster…What about the kids who want to play basketball? The Town only has one basketball court.

All of us are paying an extra half-cent tax on everything we buy in Oro Valley, but what is our money getting us? Why are we subsidizing an under-used Town golf course for less than 1% of Oro Valley residents? We need to reduce the number of golf holes to match the demand for golf and make it pay its own way. Imagine what Parks and Rec could offer our residents if it was no longer shackled with millions of dollars in golf losses.

Part 4 will be published on Monday and will include closing comments from Mayor Winfield and Vice-Mayor Barrett.

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: 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.

The Watchdog Report: What are the Town Manager and Staff doing?

The below screenshot shows that the Town/Troon, under the leadership of Town Manager, Mary Jacobs, not the council, continue to push for Oro Valley taxpayers to subsidize 45 holes of golf. This is not supported by the $50,000 contracted golf study from 2017 which recommended 27 holes and, I am almost certain, is not supported by the newly elected Council majority. [You can read a summary of the 170-page National Golf Foundation study HERE]

It is disingenuous to any potential members and is not in keeping with the Town’s Organizational Chart which places Oro Valley Residents at the top of the chart, above the Town Manager, Troon, and staff. How can staff/Troon make people commit to an annual fee when it’s possible that the golf environment will change within the year?

Why does the Town staff continue to follow the dictates of the ousted mayor?
As of November 2017, there were 226 golf members, 7 of which did not pay dues. How many members will be required to support their “dedicated 18 hole course?” Why is staff doing this now? Are they trying to corner the Town Council into accepting their policy, the policy of ousted former Mayor Hiremath, the policy of HSL? Why doesn’t the Town Manager put an immediate halt to this and let the new Council work with the citizens to see what they desire?

After all, the people are subsidizing the Community Center and Golf Courses with $2 million dollars per year from the dedicated sales tax increase, all because former Mayor Hiremath and his majority council favored passing the costs onto the public without any concern for the majority of people who will never use the golf courses. Every person in Oro Valley is forced to pay this tax to provide golf to a very small portion of the population.

In addition, in November 2017 there were 3,034 rounds of “non-member play” on 45 holes of golf. To put that in perspective, there is a public golf course within 5 miles of the Town’s courses that had 3,788 rounds on only 18 holes.

The Town Council needs to make the decisions, not Mary Jacobs.

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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: 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.

Bits and Pieces

Community Center and Golf Financials as of May 31st
With one month left to go in the fiscal year, Troon Golf has LOST $1,746,137. They have now updated their year end golf losses forecast from $1,822,941 to $1,988,548.

Troon food and beverage (Overlook Restaurant) LOST $6,532 in May for a total of $87,478 for the FY, so far.

The Community Center Fund is $66,506 in the RED. The Town Council still needs to pay back this year’s $120,000 reimbursement to the General Fund. Remember that the Town Council borrowed $1.2 million from the General Fund to start the CCF in May 2015 with a promise to refund it at $120,000 per year. They have yet to make good on that promise.

Mayor Hiremath appears to be worried about Joe Winfield’s Campaign
At the June 6th council meeting, when discussing the FY 2018/19 budget, Mayor Hiremath made the following comment:

“When I look at the Capital Improvement Program, I think there’s some confusion about the playground equipment. Playground equipment for Naranja Park site was included in FY 22/23 but we moved it up to next fiscal year, correct? And that’s to the tune of $350,000. So in plain English, there’s going to be a playground in the next fiscal year. It’s going to be in the budget.”

Finance Director, Stacey Lemos confirmed that he was correct.

Isn’t it fascinating that playground equipment was not scheduled until FY 2022/23 but when mayoral candidate, Joe Winfield, made it an issue in his campaign, suddenly playground equipment was moved up to the FY 2019/20 budget? However, keep in mind that this is tentative as that budget will not be voted on by the Town Council until June 2019.

The mayor appears to be worried in general
The challengers for Oro Valley Town Council held a voter registration drive and campaign event on July 4th. Although they were originally promised space in a prime location next to all the other vendors, when they showed up for the event, they were told by a Town staff member that all political candidates were being moved to another location in a far corner of the field. Of note is that they were the only political candidates who were setting up a table in the park that day. Why would they be moved to a less visible spot? It was very obvious that someone was trying to move them out of sight.

The Public Safety Stunt
Hiremath-Hornat-Snider-Waters pull the public safety stunt during every election. They try to instill FEAR into the voters by implying that public safety will suffer if they are not re-elected. FACT: We had a strong police department long before the current council was in office and we’ll continue to have one long after they are out of office. It’s utter nonsense to believe that Joe Winfield, Melanie Barrett, Josh Nicolson, or Joyce Jones-Ivey would want to weaken the police force in the very town where they and their children live.

From our Readers
LOVE receives lots of messages from our readers, the majority of which are positive. Below are some examples.

“Thank you for telling the truth about the politics of Oro Valley. Great reports written by a variety of Oro Valley citizens who seek to educate about what is really happening in this town.”

“I have followed Mr. Leonard’s research on the El Con golf course issue. I find his insights exceedingly thorough and sensible.”

“You are providing a great service to this town. Thank you. The people deserve to know the truth.”

Of course we also receive some negative feedback…all from the same person. Long-time LOVE readers will know who it is. This person is known in Oro Valley political circles as “the hit man…the evil trickster…the curmudgeon.” Last week, the curmudgeon expressed his annoyance with our recent article, “Tucson Association of Realtors spreading Town Council election falsehoods.”

Below is an excerpt of his comments followed by our editor’s response.

“The LOVE blog is totally out of control. What started the entire moratorium discussion is the platform statement of Joyce Jones-Ivey. ‘She will advocate for a moratorium on development.’

Ms. Barrett put out a statement… ‘We will take a temporary pause on large scale re-zonings while we assess the needs and desires of our community.’

What the hell is the difference between moratorium and temporary pause?…What happens to the Planning and Zoning Department during this ‘temporary’ moratorium? Will they be placed on leave of absence? There certainly will be little to do.”

LOVE Editor’s Response
Your comments are quite humorous. After all, for years, you did nothing but complain about the LOVE blog when Richard was the editor. Now you claim that the new editor is tarnishing Richard's reputation!

Also, the only way you could know that "What started the entire moratorium discussion is the platform statement of Joyce Jones-Ivey" is if YOU are the person who provided the false information to TAR.

Regarding your concern about Planning Staff being placed on a leave of absence due to a building moratorium, you are implying that we must continue building just for the sake of keeping the Planning Department staff employed. It is not the mayor’s job to create work for the sole purpose of keeping Town staff employed. The mayor and council are elected to work for the citizens, not for the Planning Staff, and not for developers. Unfortunately, this concept has always been lost on you.

The quotation you supplied from Melanie Barrett is proof that the challengers have no plans for a complete moratorium on all building, only a temporary pause on large scale rezonings.

Our editorial was factual. We're sorry if you have trouble accepting facts. We will not be responding to any more of your emails. We have much more important work to do.

Sincerely,
LOVE Editor

The Golf Members (The Royalty) are spreading lies

Members of the Golf Association, otherwise known as "The Royalty" have been spreading lies by telling people that golf is breaking even as a result of their membership dues and trail fees. According to a Town financial document, this is TOTALLY FALSE.

Fiscal year 2016/2017 is the last complete year that we have to work with. The Community Center Fund (CCF) is divided into two entities: Contracted and Town.

The Town’s Portion consists of revenues provided by:

• Fitness member dues
• Daily drop ins
• Recreation programs
• Swim/Tennis Lessons
• Facility rental income
• Concession sales.

The Town's expenses come from: Personnel, Operations and Maintenance.

The Contracted Portion (Troon) consists of revenues provided by:

• Golf revenues
• Member dues (golf)
• Tennis revenues
• Food and Beverage
• Merchandise and Other.

The Contracted expenses come from: Personnel, Operations and Maintenance, and Equipment leases. There are additional revenues coming to the CCF that are derived from Sales Tax Revenues, General Fund Transfers ($350,000 in FY 2016/17), Real Property Rental income, Sale of Assets, and Miscellaneous.

During FY 2016/17, the Contracted revenues were $2,975,096. This number includes $725,611 that was provided by member dues. The Contracted expenses were $5,488,034...resulting in a LOSS OF $2,512,938.

Since when is 37% and 24% considered as “breaking even?”
The proposed FY 2016/17 budget forecasted $1,153,655 in member dues. At only $725,611, the member DUES fell short of this mark by 37%. Total CONTRACTED REVENUES are $2,975,096 of which members provided $725,611 or just 24%.

To be fair, the Town is operating 45 holes of golf. A member course would only utilize 18 holes. The five Tucson 18-hole courses average about $1.3 million each to operate. Tucson spends less in water and in management fees then Oro Valley. However, if the members desire their own 18-hole course, they need to provide at least $1.3 million, NOT just $725,611.

Town admits that golf membership is declining
The current fiscal year budget forecasts member dues to be $959,000. (That’s $194,464 less than last year's forecast; an admission by the Town that golf membership is declining). Even with the reduced forecast, as of January 2018 (58% through the fiscal year), the members have provided only $465,500 which is 48.5% of the expected dues.

Bottom Line
The members are NOT providing the income required to support their own course. We need to only keep 18 holes of golf, eliminate the members, and become a strictly municipal course. If that doesn’t work, then stop golf all together. We know the current model is not working as we have been doing this for three years with no positive results. In fact, there are less members now than when the Community Center opened in May 2015.

The Watchdog Report: Community Center Fund - January 2018 YTD Financial Status

January marks 58% of the way through the fiscal year.

Troon Golf and Overlook Restaurant still losing money
As of January, Troon's revenues (Golf plus Food and Beverage) were 53.6% of forecasted for the fiscal year. Troon operating expenditures were 60.5% of forecasted.

Revenues

• Budgeted for $3.3 million in revenues. Actual revenues were only $1.8 million.

Expenditures

• Budgeted for $5.2 million in expenditures. Actual expenses $3.1 million.

Troon’s losses for the first 7 months in each fiscal year:

• July 2015 through January 2016:   Troon lost $1.8 million.
• July 2016 through January 2017:   Troon lost $1.6 million.
• July 2017 through January 2018:   Troon lost $1.1 million.

The first 7 months of this fiscal year are looking better than previous, but they’re still losing money. The Council will tell you that this is a good trend and I guess you could look it that way if it wasn’t YOUR money.

The Overlook Restaurant continues its losing tradition. It lost $16,648 in January and has lost $82,430 so far this fiscal year. This averages to over $11,000 per month.

Rounds played

The amount of rounds played in January 2018 was 5,269. This averages to 170 rounds/day on 45 holes of golf. For some comparison, surrounding courses in January averaged over 190 rounds/day on 18 holes of golf.

There were 2,913 rounds played by golf members (the one’s whose golf games the taxpayers are subsidizing). Outside play was only 1,839 rounds (or an average of 59 rounds a day). Also of note is that there were 517 complimentary rounds.

The Royal Treatment
Do YOU like paying for golf members to enjoy reduced membership rates? Do YOU like paying for other people to enjoy FREE GOLF? I challenge anybody to tell me of another Town anywhere in the world whose residents are kind enough to subsidize a private golf club for other residents. Why are certain residents treated like royalty?

Membership has dropped
In January 2016, there were 257 members of the Golf Association. In January 2018, the membership has dropped to 249. Remember when Troon was hoping for 318 members by December 2015? I’ve asked this before and I’ll ask it again… Why do we still cater to the members when their support of the investment is dwindling?

Options for a Community of Excellence
Go strictly municipal with only 18 holes of golf and no memberships. If this doesn’t work, then eliminate golf altogether and create a linear park for everyone to enjoy. Make Oro Valley a Community of Excellence with 340+ acres of linear trails. Trails that can be utilized and enjoyed by ALL residents.

The dedicated sales tax revenues through January 2018 were $1,313,971 and the Town still lost $75,729. Again, if we minimize the golf drain, the sales tax will then cover the expenses.

Seeing red
The Community Center Fund is still $107,255 in the RED despite having only spent 31% of the promised capital outlay. How are they going to make their annual $120,000 loan repayment to the General Fund? (For our new LOVE readers, the Town Council borrowed $1.2 million from the General Fund to start the Community Center Fund in 2015 with a promise to pay back $120,000 per year for 10 years. They have repeatedly failed to make this commitment.)

Town Revenues and Expenditures
The Town’s portion of the Community Center (Fitness Center, Swimming, Recreation Programs) was budgeted for $777,580 in revenues but brought in only $515,665. This included an expectation of $23,000 in daily drop-in fees vs. an actual of $17,520. It also included an expectation of $614,000 in member dues vs. an actual of $422,920.

Operating expenditures were budgeted for $1,030,406 but the actuals were less at $591,394. This is only because they have not spent what they promised on capital improvements and the facility is still not ADA compliant after nearly three years of ownership.

The Watchdog Report: August 2017 Community Center Financials

The Community Center financials are now posted for August 2017. The good news is that we are doing better than last August. Unfortunately, the numbers are still nothing to celebrate.

End of month balance
The Community Center Fund (CCF), the fund that was set up to collect ALL the revenues and pay ALL the expenses, ended the month with a NEGATIVE balance of -$94,456. This negative balance takes into consideration the cumulative sales tax revenues of $341,949 collected so far this fiscal year (July 1 through August 31, 2017).

Sometime during this fiscal year, this fund must also pay the $120,000 annual loan payment to the General Fund. The fund has also budgeted another $77,680 in capital outlay. Apparently making the facility ADA compliant is not in the cards for this fiscal year either because that will cost about $400,000. So this is another year where the Town's disabled citizens must utilize the loading dock to enter the Community Center. This continued lack of ADA compliance should be an embarrassment to the Town.

Revenues, Expenses, and Losses
Total revenues through August 2017 are $127,803 higher than at the same time last year, BUT the total expenses are also higher at $88,324. Even with this trend, the total losses in the CCF are $176,433 for July and August. If it were not for these losses, we could build out Naranja Park without asking for a bond and secondary property tax.

Total losses attributed to golf for August 2017 are $239,805, which is more than the cost of a Little League field. The total losses attributed to food and beverage (the Overlook Restaurant) through August 2017 are $25,701, which is equal to the cost of some playground equipment or a ramada. (Items the citizens requested in the June 2014 Parks and Recreation survey).

Show me the money

The Town’s contracted Golf Study recommended that the Town spend $7 million dollars to transition the Pusch Ridge course to a 12-hole par three course and transition the remaining 36 holes of golf to 27 holes.

With the continued negative balance in the Community Center Fund, where is this money going to come from? Where is the money needed to make the Community Center ADA compliant going to come from? Where is the mandated $120,000 annual pay back to the General Fund going to come from?

The “Cohesive” Council needs to make a decision
So as you can see, even though the numbers are better this August than last August, there is little reason to rejoice. As a result of the very unwise vote by 4 members of the current Council to purchase the Community Center and Golf Courses, the existing Council has to make some tough decisions and they need to do so ASAP. Pushing a Property Tax on the homeowners of Oro Valley is not the answer, and as we’ve stated previously on LOVE, it amounts to punishing the taxpayer for the sins of the council.

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 in 1969. He worked as an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley after retiring in 1998. Mike 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. During his time on council, he was named as one of 23 Leadership Fellows 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: What will it take to get a responsible council?

The end of fiscal year 2016/17 financials have been released and they are disastrous. We all know the Mayor and Council rely on staff to make the decisions, so why doesn't staff do their job and give these elected officials the facts?

What I am about to communicate is not "fake news” as Councilmember Solomon would have you believe, but facts that can be substantiated by Town documents.

Food and Beverage
Food and beverage, primarily the Town-owned restaurant, The Overlook, was forecasted to make $39,589 during the fiscal year, but lost $114,792. Including last year’s losses, this government-owned restaurant has lost over $370,000.

I am aware of a conversation that took place between an entrepreneur and the Interim Town Manager, Finance Director, and Parks and Rec Director for a potential lease. That offer has gone nowhere.

Even the Town's contracted golf study recommended that the Town lease this venture. How many more thousands of dollars (that could be spent on Naranja Park instead) are we going to lose before this Council takes action? I was told by the ex-Town Manager, Greg Caton, that it cost $250,000 to establish a lighted ball field. The $255,000 that The Overlook Restaurant lost last year could have funded one lighted ball field.

The Community Center
The Community Center and Recreation Fund (CRF) finished the year $97,156 in the red. In other words, even with $2.1 million in sales tax revenues, and an additional $350,000 transferred from the General Fund, the CRF ended the year with almost a $100,000 deficit.

Since its inception the CRF has received $1,550,000 from the General Fund and $4,736,926 from the increased sales tax revenues for a total of $6,286,926, and still the fund is almost $100,000 in the hole. How many Naranja Park improvements could be built with this money?

Councilmember Solomon spreads false information

Back in April, Councilmember Steve Solomon asserted that, “The Community Center is thriving. It is not failing.” He also said, “The Golf and Community Center revenues and the dedicated half cent sales tax for the year will cover all of its costs. It’s not using any other Town funds.”

FACT: The Community Center revenues and half-cent sales tax increase did not cover all of its costs. And it is using other Town funds in the form of $1.5 million that has been transferred out of the General Fund to meet Community Center expenses.

Troon Golf and Tennis
The total Troon losses (golf, tennis, non-aquatic center swimming, food and beverage) for FY 2016/17 were $2,512,938. Troon forecasted that the losses would be $1,534,505. This is a $978,433 miscalculation. How many more miscalculations are staff and the Town Council going to allow before they rid the town of Troon?

Trending Upward?
The Town Staff and the Town Council assert that the Community Center is trending upwards. Councilmember Solomon asserted in April: “The expenditures for the Community Center, particularly this year, are down and our revenues are up.” He continued, “Now that’s the kind of trend you want and it’s been trending that way for awhile now.”

FACT: During the prime months for golf (November - March) Troon lost $489,378 during FY 2015/16, and they lost $787,934 during FY 2016/17. That's almost $300,000 more in losses this year than last year. Trending upward?

Fiscal year 2016/17 began the year with $65,770 in monthly Member Dues and ended the year with $58,226 in Member Dues. Trending upward?

Council can no longer blame it on “headwinds”
The Town Staff and the Town Council cannot support their statements that this investment is trending upward. The Council does not do their homework to verify the staff statements.

In April of 2016, Councilmember Mary Snider claimed that my “constant attack on the viability of this property” was “creating a headwind in town” and “impacting the memberships in golf.” Vice-Mayor Waters chastised me to “get on board” with the project.

Since I have not been on council for almost 10 months (during which time the staff and council have repeatedly told the community that the Community Center is doing great) they can no longer blame the problem on “headwinds.”

It’s time for the Town Council to “get on board” and admit the horrendous mistake they made in December 2014 and do something about it…look at the facts, spend responsibly, and stop taxing the citizens.

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 in 1969. He worked as an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley after retiring in 1998. Mike 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. During his time on council, he was named as one of 23 Leadership Fellows 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.