Board OKs $2 Million in Golf Course Improvement Bonds

Pointing to a severely outdated irrigation system that is now costing the village much more than a typical irrigation system should on an annual basis, village trustees voted on Monday night to borrow $2 million in bonds to upgrade the village-owned course.

With most repairs coming to the irrigation system, improvements are also expected to be made to course tee boxes and bunkers as heavy work will be done on the course.

"It's like having a flat roof shot," said Trustee Lee Rosner, who presented photos of breaks in the system Monday night, along with golf course superintendent Brian MacMillan. "All we're doing all day long is fixing leaks."

According to Rosner, the current irrigation system – installed over two decades ago – was expected to have a shelf life of 10 to 15 years. The past couple of years, MacMillan said, the country club has spent $20,000 to $25,000 to keep the system up to par, while employees who could otherwise be handling other duties have been devoted to fixing leaks full-time.

"Obviously this is a costly item, and was something the CCMAC (country club advisory committee) wrestled with for quite some time," Rosner said. "I know the consensus of the CCMAC and the professional staff is that it's beyond its time. We just can't put it off any longer."

In order to pay for the system, a capital assessment paid for by members – which has recently been used to cover the cost of bonds floated to pay for a new maintenance shed – will be continued, replaced by the new project. However the exact cost of the new assessment to members remains unclear, as the total amount of debt service won't be known until village leaders decide to bring the bonds to the open market – when an interest rate will be realized.

Village treasurer Don Pearce said that members pay an average of about $225 in capital assessments annually now, totaling $134,000. Under an interest rate of 3.75 percent, that could increase to about $320 per year, or $192,000. A rate as low as 2.5 percent would guarantee a $160,000 annual payment.

Rosner said future membership could be at risk if problems continue – and inversely, a new irrigation system could be a draw for new golfers. Fifteen new non-resident members, at about $4,000 each, could close a $60,000 capital assessment gap.

The village board decided that in order to approve the $2 million in bonds, any gap between the current and future capital assessments would be borne entirely by the country club.

According to Village Treasurer Don Pearce, the county club currently has $750,000 in its reserve account, running on about a $100,000 surplus each year.

Improvements are expected to be made starting at the end of the 2013 season, and into early 2014. Delays could be possible to start next year's golf season, weather permitting.