OCEAN CITY — With the municipal golf course thriving financially, the Ocean City Mayor and Council this week approved funding for several needed projects at Eagle’s Landing.
As a municipal golf course, Eagle’s Landing is an enterprise fund, meaning it is set up to be self-supporting financially. With the golf course, off Route 611 in West Ocean City, on solid financial ground, there is a fund balance available to tackle several important projects to help keep it that way.
Working within an enterprise fund, some golf course projects are not budgeted in the event revenues for the year do not meet expectations. However, should revenues exceed expectations, some of those projects and purchases can more confidently be pursued.
Such is the case for Eagle’s Landing. The Mayor and Council learned this week Eagle’s Landing reported a profit of nearly $493,000 in fiscal year 2022 and is trending in that same direction for fiscal year 2023. The municipal golf course currently has an unrestricted fund balance of nearly $564,000. As a result, golf course staff this week requested approval to spend around $211,000 to fund projects to maintain Eagle’s Landing’s. Eagle’s Landing Superintendent Joe Perry presented the request to the Mayor and Council on Tuesday.
Perry listed the proposed projects and equipment purchases, including renovations to the existing clubhouse. The project includes the second phase of a window replacement project and the replacement of the rear entrance to the clubhouse.
“The first project is to renovate the clubhouse and replace the windows,” he said. “The building is deteriorating. It is 30 years old. It is expected there will be some wall structure and drywall repair required due to water damage from the leaking windows. In addition, the cupola-style rear entrance is full of rotting wood.”
The repairs to the back part of the clubhouse at Eagle’s Landing is expected to cost around $100,000. Another project Perry presented on Tuesday for which the golf course’s fund balance could be used is the repaving of the entrance road and clubhouse circle. That project is expected to cost around $35,000.
“This project includes the paving of the entire entrance including the circle in front of the clubhouse and over beyond the bag drop area,” said Perry. “This area has deteriorating asphalt, drainage problems and several cuts from projects and repairs over the years.”
Another project on the list is continuing with the golf course’s master plan and permitting for several important projects. While the maintenance projects will improve Eagle’s Landing, still looming is the flood mitigation for some of the waterfront holes. The goal is to develop a golf course renovation master plan, perform survey and engineering work, obtain permits and retain the services of a design or build firm to make changes to certain identified holes in order to reduce damage from recurring tidal flooding events. A pre-master plan assessment has been completed, which identified needed repairs and improvements to the course. The master plan update and permitting could be paid for through a transfer from the golf course’s fund balance of around $54,000.
The highest priority are measures to reduce repeat damage and hole closures due to tidal flooding by raising the elevation on five low-lying holes, replacing storm drain outfalls and installing additional flood control improvements. Certain holes flood during high tide events and have to be altered or deemed unplayable at times. A needs assessment has been prepared in advance of the master plan and it could soon be time to act on it, which is why Perry was seeking approval for a fund balance transfer on Tuesday.
The final project or purchase on the list presented on Tuesday is the purchase of a replacement beverage cart for the golf course to the tune of around $22,000. Perry said the existing beverage carts had outlived their useful lives and that he was seeking a replacement for one of them.
“They are incredible revenue generators,” he said. “It’s gotten to the point the cost of repairs is exceeding the value of the existing cart. Timely ordering is crucial to potentially having the use of the cart this summer as the lead time runs seven to eight months. Sometimes, it takes a year to get these vehicles, so we’d be happy to get it for 2024.”
Council Secretary Tony DeLuca made a motion to approve the use of fund balance for the identified projects and purchase, a motion seconded by Councilman John Gehrig, who praised Perry, Eagle’s Landing Golf Professional and Manager Bob Croll and their staff for exceeding revenue projections and the healthy fund balance needed.
“The golf course has really been making money the last few years,” he said. “You guys are doing a great job out there.”
The council voted unanimously to approve the use of Eagle’s Landing fund balance for the requested projects and purchases. In response to a question about the need to come before the Mayor and Council for approval of projects and purchases, Budget and Management Director Jennie Knapp said there were protocols spelled out in the town’s budget policies.
“I cannot increase the budget without your permission,” she said. “I can move funds from one line item to the other.”
