IVGID continues to work on budget, golf rates increased
INCLINE VILLAGE, Nev. — The general improvement district Board of Trustees made major steps forward last week in finalizing a tentative fiscal budget for 2022/23 after deciding to keep facility fees at a lower rate than previous years.
The fee, which is a combination of the beach fee and recreation fee, will stay at $780,
“We would recommend first that the board retain the facility fee at the $780 level,” said Director of Finance Paul Navazio. “I think there’s more work to be done with how we allocate it.”
Navazio said that with the direction from the board, staff will continue to determine how the funds would be allocated.
“I think the right allocation going forward still really needs to be informed by … the rest of the budget process … to figure out exactly what our capital needs are in the community services and beach scope costs and financing plans,” Navazio said. “Then you can sort of fine tune the facility fee as opposed to set it based on the priority of the day or the need of the day.”
The board decided that the facility fee would stay at $780, and now Navazio and staff can move forward with determining the best way to allocate the funds.
The consent calendar was fully pushed through.
The final payment for the Mountain Course Golf Cart Path project of $182,267.34 was approved, along with three change orders. The change orders resulted in an increased amount of pavement to be installed and asphalt to be removed, along with a $10,000 deduction from the quote for modifications made to the pavement removal.
The board also approved $20,000 in funds to the Tri-Strategies agency brought on to secure federal, state, and local funding for district projects. IVGID General Manager Indra Winquest noted that while there are not any tasks for the agency at the moment to complete, they are keen to seek funding that could support the effluent pipeline and pond-lining project.
With the approval in place, Winquest can now work directly with the chairman and staff to work on secure funds for the district, rather than having to take another action item to the board.
The board also approved the 2022 season golf rates.
Director of Golf and Community Service Darren Howard noted that while the non-picture pass and guest daily rates are on average, meeting or exceeding target cost-recover levels, but that the picture pass and golf play passes fell below target cost-recovery levels.
Trustee Sarah Schmitz pointed out that while rates at the Mountain Golf Course are being raised, there is still little movement forward to making the course profitable.
Winquest explained that since the rate increases have been minimal but cost of goods and services are inflating, it could be affecting the overall plan, and a longer period of rate increases would need to be implemented over at least three years.
“I think everybody understands that the rates show us that we need to get there,” said Winquest. “And the Mountain Course analysis shows us that.”
It was concluded that even though the pricing structure of the Mountain Course doesn’t cover the cost of operations currently, the board will continue to subsidize operations and capital improvement projects for the course.
“The golf courses are here for our residents,” said Trustee Kendra Wong. “And if you start with that concept in determining how you structure rates, then it doesn’t necessarily matter how much we’re recovering or how much the rec fee is allocated to golf operations.
“If we start with, ‘These golf courses are here for the community and they’re here for our residences, than that means philosophically, we are willing to subsidize the operations of the courses for our residents and our community,” Wong added.
While the existing rate structure will remain the same, there will be an increase in the all you can play golf passes by 10%, and all other play passes by 5%.
Additionally, there will be a 7% increase in picture pass fees and 5% in non-picture pass fees, with guest fees to fit in between the pass holder increases. The Hyatt Hotel rates will also increase by 5% on both the Championship and Mountain Courses. Charity rates for the courses will be increased to cover the operational costs for each golf course.
The overall recommendations are expected to see an increase in revenues estimated at $225,000 for the Championship Golf Course, and $25,000 for the Mountain Golf Course, which is set to close early this season in order to finish the cart path project.
Schmitz said that moving forward, there needs to be clear objectives for the Mountain Course in order to have the course begin covering operational costs on it’s own.
Finally, the board approved the pricing structure updates for the Chateau and Aspen Grove, which will see adequate pricing for operational costs at the structures, while also giving discounts to residents and contributing to the profit margin created through the rental use of the facilities to the general public.
To watch the entire livestream, visit livestream.com/ivgid/events/10289235/videos/230271928.
To take a look at the entire agenda, visit yourtahoeplace.com/ivgid/board-of-trustees/meetings-and-agendas.
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