Over the past six years Winter Park spending has grown faster than inflation and the city commission has voted for over $100,000,000 in government waste. Click here for the documentation. We don’t have a revenue problem. We have a spending problem!
We can now add another wasteful boondoggle to the city commission’s fiduciary failures.
The commission borrowed $8,000,000 in 2022 without a voter referendum to buy the Winter Park Pines Golf course, arguing that it would make money. Instead, Winter Park Pines is losing $500,000 each year.
In 2022 our Mayor wrote, “This is an investment in recreation and green space that will pay for itself from the business income, and will not increase your taxes.” Not true. As I wrote at the time, “The city is going to borrow $8 million we will be on the hook for when the golf course operates at a loss after capital and maintenance requirements. When it loses money, it WILL impact our taxes. If we don’t buy it, it remains a golf course under private ownership… This is a risky and unnecessary purchase, and a boondoggle in the making.” That is exactly what happened.
How many bad decisions and wasted tax dollars will it take for Winter Park voters to wake up? Tell the Mayor and Commissioners to reduce spending now: mayorandcommissioners@cityofwinterpark.org.
Peter, I agree with your analysis. We have one of the highest, if not the highest, ad valorem taxes per capita for cities our size in Florida. What I wonder is why you always blame the Commission. Where is your finger-pointing at the City Manager, who annually prepares and proposes the budget? As you know, we have a “strong” City Manager form of government in WP. Seems the spending problem starts there. Why the silence?
Michael,
The citizens elect a city commission to represent their interests. The city manager reports to the commission with the responsibility to execute their policy priorities.
I have been involved with the city for 20 years now and have worked with city management and staff on many issues over that time. I can say without reservation that City Manager Randy Knight, his management and staff, are both professional and very competent. However, it is naïve to think that any city employee does not relish spending every dollar allocated to them by the city commission.
It is clearly the responsibility of the city commission to direct the city manager and staff, not the other way around. A city commission that does not fulfill their fiduciary responsibility gets overrun by city staff.
An effective city commission understands human behavior and fiduciary duty.
As an example, I received several emails from people supporting the purchase of Winter Park Pines. These people included a golf advisory board member, a person living on the golf course, and several regular users of Winter Park Pines. One resident Winter Park Pines member let me know his cost per round played was $7 and did not like the idea that my email may result in that price being increased. The point is, everybody has a vested interest, both personal and financial. Should the commission continue to subsidize people with a vested interest in Winter Park Pines at the expense of all Winter Park residents?
It is the job of the city commission to serve the greater good, not the narrow interests of a few and certainly not the interests of city management and staff.
Here is another example that gets to the heart of fiduciary responsibility. Former Mayor Phil Anderson was involved with Steve Goldman in starting and supporting The Winter Park Land Trust, a non-profit promoting green space. The commission held public meetings to access what to do with the city’s Progress Point land on Orange Avenue. The only invited guest to offer ideas was Steve Goldman. As Mayor, Phil Anderson embraced and approved Steve Goldman’s plan to turn about 4 acres into a park. This park had a direct cost of over $5,250,000 (budget $4,000,000) and an opportunity cost exceeding $10,000,000 (at today’s land values). The land is now mostly parking lot and little park. Was Phil Anderson representing his interest in expanding green space at the expense of Winter Park residents?
So, Michael, I see that we have two issues. One, a city commission that does not understand its role in directing city management, and two, a city commission driven by personal ideology rather than fiduciary duty.
Peter, I agree with many of your perspectives on the City’s financial missteps, but not this one:
“The purchase of Winter Park Pines was indeed a boondoggle, and no amount of lipstick or schmaltz can change that.”
I’ve reviewed the PFs and emails, and from what I see, the course is currently operating at a profit—albeit, not yet covering debt service. As a 40 year WP resident and someone who visits often, I’ve seen a number of improvements made to the property that weren’t financed through that debt that were necessary and have added real value—not just on paper, but in how the space is now used and enjoyed by residents.
The addition of outdoor patio and seating areas attracts golfers and non-golfers alike who now meet up for a drink, lunch, or dinner. That is the intended use for community property.
That said, there’s room for improvement. The cost to play for Winter Park residents is too high. I’ve lived here for 40 years, and the course was far busier in the past. Lowering the fees would encourage more play. Offering discounted group lessons, enhancing the driving range with better technology (which I understand is already being considered), and expanding youth programs would help boost participation and revenue, making it easier for the course to meet its financial obligations.
If there’s concern about residents subsidizing outside play, a non-resident surcharge could easily address the issue.
We’ve watched several golf courses across Central Florida close in the last decade. Assuming this one wouldn’t have closed —or worse yet, fallen in disrepair— is just that: an assumption. With a few changes and some thoughtful planning, this property can indeed become the investment; financially, recreationally and in community, that was originally intended.
Frank, I think it is great that Winter Park Pines exists. The problem is that the city represented that the operation of the course would cover debt service and capital needs, and borrowed $8,000,000 without a voter referendum to buy it. This is only one example of the financial problems this city commission has created.
So now, you and other users are wed to the asset to the extent that you prioritize spending our limited capital dollars improving a money losing operation. I also presume you would support a tax increase to fund this losing operation because you use the course. But what about the thousands of Winter Park residents who don’t use it? Why should we pay more in taxes to support your recreational preferences? The city needs to raise prices to see if they can get the course to cover its debt service and capital needs, and if not, lease operation of the course to a professional golf management company.
You see the city as an enterprise that should make a profit, but a city is supposed to provide services and spaces for its residents. And that does not always equate to a profit or zero sum endeavour.
I reviewed your numbers and yes, after two years, the golf course is losing money because of the loan payments on the purchase of the golf course AND the property; but according to your own spreadsheet the golf course itself (i.e. the business) makes more than it costs to run. Over time, owning that much land outright AND having a profitable golf course benefits the entire community and is an effective use of tax payer funds.
My family has lived in Winter Park for almost a century, I was born here as were my children, I have coached Winter Park youth sports for more than a decade, yet I have never met more new people from Winter Park or had more engaging conversations that I do when I tee off on weekends at the Winter Park Pines Golf Club or hang out at the Bonfire Grill in the evenings after a range session.
You should visit the course sometime, the city has put a tremendous amount of work and effort into improving the course and instead of having a poorly run goat track that residents despised and brought down surrounding property values, it is slowly turning into a course on par with Dubsdread or Rio Pinar.
Richard, I think it is great that Winter Park Pines exists. The problem is that the city represented that the operation of the course would cover debt service and capital needs, and borrowed $8,000,000 without a voter referendum to buy it. This is only one example of the financial problems this city commission has created.
So now, you and other users are wed to the asset to the extent that you prioritize spending our limited capital dollars improving a money losing operation. I also presume you would support a tax increase to fund this losing operation because you use the course. But what about the thousands of Winter Park residents who don’t use it? Why should we pay more in taxes to support your recreational preferences? The city needs to raise prices to see if they can get the course to cover its debt service and capital needs, and if not, lease operation of the course to a professional golf management company.
“The problem is that the city represented that the operation of the course would cover debt service and capital needs, and borrowed $8,000,000 without a voter referendum to buy it. This is only one example of the financial problems this city commission has created.”
And I was so stupid to believe the city and the mayor and commissioners at that time!
Peter & Pitt, let me try this from a different angle. Did the city misrepresent the financials or has the investment not lived up to its potential? This much I can tell you, it does not live up to its potential. I rode my bike past the course at 7:30 this morning and saw 1 person playing on the 2 holes I could see. I stated that the course is too expensive and Peter suggested raising fees. That will not work. Just for basics- 100 people a day at $49 is $4900 while 200 people/day at $35 = $7000. The course is too expensive. I did a little search and found these historical rates “2015 TripAdvisor review -$22 per round”, “2023: LocalGreenFees.com- $17 to $25″.
Secondly, I do not expect you to subsidize my rounds but this is just like the age old argument of why should childless marriages subsidize schools” -because in the end it benefits everyone. In actuality, I haven’t played golf there in quite awhile because it is TOO EXPENSIVE but I hit range balls, shop there, bought my wife golf lessons there, and hang out on the patio and enjoy a cocktail and a meal. Oddly enough, this has become a meeting spot lately for political candidates, local PTA’s, neighborhood groups, teachers and WP residents. I feel pretty safe in saying that none of these groups meet up regularly at Cady Way, Phelps, Azalea Lane or most of our other recreational areas.
For historical context, this course used to be one of the busiest courses in the US. “Winter Pines Golf Club in Winter Park, Florida, has historically been recognized as one of the busiest golf courses in the United States. In 1992, the course reported a peak of approximately 90,000 rounds played, averaging about 300 players per day” {Floridagolfer} While I am not suggesting it will reach that peak again (although some competitors are out of business i.e. Deer Run) I believe the course can recoup its investment dollars and provide a benefit to the non-golfing community as well.
Frank, the larger context is that this is just one example of money being wasted and mostly on people who do not live in Winter Park. As I initially suggested to the commission back in 2022, the price for the land was reasonable but we should turn it into a passive park. One approach that may be appealing is to sell off some of the land and allow zoning for residential development and pay off the loan. The rest of the current course should be a passive park.