Question
Terrebone Parish has operated a popular swampside municipal golf course for more than 30 years. Local patrons as well as tourists enjoy reasonable rates in
Terrebone Parish has operated a popular swampside municipal golf course for more than 30 years. Local patrons as well as tourists enjoy reasonable rates in a picturesque setting. Ten years ago, the course was quite profitable, so the parish created an enterprise fund and moved accounting for the golf operations from the General Fund to the new enterprise fund. Over the years, however, course usage has declined and costs have increased. During the current year, the course suffered a $200,000 shortfall that had to be covered by the parish's General Fund. In the upcoming year, the parish projects the shortfall will rise to $300,000. Many criticize the parish for injecting money into a business that should be primarily funded by user charges. Supporters of the golf course note that a municipal course is part of the parish's Parks and Recreation department, which benefits the entire community, hence parish support of the course is warranted. How would you suggest they handle the golf course going forward? Be open to other options, such as selling the property, leasing the property, management contract, or status quo.
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