Village Links not a burden to taxpayers

An article released by the Daily Herald March 3, titled "Suburban Golf Courses losing money for taxpayers" referenced an operating loss for the Village Links of Glen Ellyn, costing its taxpayers $304,788.

Quite the contrary, since opening in 1967, the Village Links, and now Reserve 22, has operated effectively to generate revenues to cover all costs of operation as well as capital and debt service. The Village Links/Reserve 22 operates as an enterprise fund without any taxpayer support, completely independent of other village funds. All costs are paid through golf and restaurant revenues.

What is unique about the financial structure of Glen Ellyn's golf course and restaurant operations is that all related costs are paid for out of user fees, including the golf course renovation in 2003, $6.2 million, and the recent clubhouse expansion in 2013 ,$5.2 million. In each case, we carefully scrutinized our ability to fund the projects and to pay for them with operational profits. We want to be financially responsible and maintain our status as a true enterprise fund within the village.

While many municipalities, as a general practice, fund major renovations and capital improvements with taxpayer money, the Village Links took out general obligation bonds, and used some of its cash reserves, to fund the two latest projects. Annual debt payments of $650,000, along with operational expenses and capital replacements are paid exclusively from golf course and food and beverage revenues. Any deficits would be paid for out of cash reserves, which are funded exclusively from annual operational profits. At the end of 2015, cash reserves totaled $1.47 million. In the past 10 years, operational profits of $5.5 million have been used to retire $4.3 million in debt, cover $880,000 in routine capital expenses and bolster cash reserves.

Jeff Vesevick

Glen Ellyn