Foregoing a vote by the Town Council, Oro Valley management has decided to close the recently purchased El Conquistador golf courses after news hit that the course operations are facing greater losses than previously expected. Despite the Finance Department’s continued assurance that Community Center Fund revenue sources are seasonal in nature and that April and May actuals will provide a better indication of year end financials, the Pusch Ridge course will be closed from May 2 – Oct. 30, and the Conquistador Course will be closed from June 11 – Oct. 3.
The course managers will use the time to make some capital improvements that they hope will revive the ailing enterprise including aerification, overseeding, bunker care, and storm drainage improvements.
Related article: Oro Valley Scrambles To Mitigate El Conquistador Golf Losses
In an email to supporters, Town Council member Mike Zinkin advised of the closures: “There is no mention of how much money will be saved, but the bottom line is that the promises made to the people in December, 2014 cannot be kept. The losses that this purchase is causing is exceeding the revenues, including the .5% increase in the sales tax. The only way to stem these losses is to curtail the services that were promised to the People.”
In his email, Zinkin asked a rhetorical question: “Why not admit the mistake?”
At the April 20th Town Council meeting – just prior to the announcement of the closures – Mayor Hiremath took issue with similar comments from Zinkin and specifically asked whether the expenses exceed the revenue. The Finance Director confirmed that the Year to Date Revenue is $3.6 million while the Total Expenses are $4.5 million, approximately $900,000 greater than revenue. Town Manager Caton rallied to support the Mayor and insisted that they have solutions to this challenge that will “close the gap.”
At last Wednesday’s Town Council Study Session, Zinkin offered another alternative for discussion. This would entail bonding for $4-6 million, using that sales tax to pay for the bond, and utilize the funds to fund completely all the needed capital improvements for both the golf and Community Center. He suggested that doing this piecemeal is not working. He hopes the Town will choose to do it “right,” or not at all.
Many Oro Valley taxpayers are dismayed by the obvious inability of the Town to run a business and the apparent effort to hide the dismal numbers from the public.
Oro Valley Town Manager Greg Caton will work his last day on June 2, 2016, before leaving the town to serve as city manager in Grand Junction, Colorado. Oro Valley Police Chief Daniel Sharp would serve as interim town manager.
When Sharp begins his term as interim town manager on June 3, 2016, Deputy Chief Larry Stevens will assume the position of interim police chief. The choice to turn to the Police Chief was not unexpected. The Police Department has served the political interests of Mayor Satish Hiremath over the years.