Bulletin file photoThe ninth hole at Juniper golf course in Redmond.

REDMOND — Hit with a particularly bad winter and a nationwide declining interest in golf, Juniper Golf Course is ending this fiscal year in the red, requiring the city of Redmond to pay not only Juniper’s $405,000 mortgage but also up to $30,000 in year-end operating expenses.

“We’re stuck with the decision (to back Juniper’s construction bonds) that was made years ago,” City Manager Keith Witcosky said in an interview last week . “And while it’s easy to second-guess whether it was the right choice, the fact is that this is a city asset, and we’re responsible for it.”

Juniper was able to meet its fiscal obligations, including payments on a $5.9 million construction loan, for four years after opening in 2005. But by 2009 the city was forced to step in and make the mortgage payment and cover some operating expenses. A management firm, Course Co., was hired to oversee day-to-day operations, and for the past two years Juniper was able to pay its operating expenses and a portion of the loan. Based on last year’s performance, the city had budgeted $303,000 in 2013-14 for Juniper.

Poor second-half returns will require the city to pay almost $130,000 more than it anticipated.

Last week Juniper General Manager Steve Bratcher told the Redmond Golf Commission, a citizen’s advisory board formed when the city began assuming fiscal responsibility in 2009, that Course Co. has been able to save $98,000 in expenses this year (from budgeted numbers) by careful labor management and delayed purchases, but it still wasn’t enough to avoid the deficit.

“I’m proud of what we’ve been able to accomplish in terms of cost-cutting,” Bratcher said. “But although we have what I consider a group of hard-core golfers who plan to become members no matter what, it’s hard to grow that number very fast in a community the size of Redmond. We’re looking for dollars in other areas that might come in faster to offset that.”

Nonmember revenue at Juniper comes from daily rounds of golf, food and beverage sales, and events.

According to the World Golf Foundation, more golfers leave the sport every year than take it up. In Oregon, rounds of golf declined 7 percent over the past three years. Memberships at Juniper have remained flat despite efforts to market its value to locals.

“I’m confident in the partnership we have with Course Co.; they have a proven track record,” Witcosky said. “But I also expect them to maximize the marketing opportunities for Juniper.”

The first half of the fiscal year was good for Juniper, with revenues close to budgeted amounts and expenses $74,000 less than budgeted.

However, severe weather from January to April was a significant setback. Juniper had 45 days with no rounds of golf played in those four months, instead of what Bratcher said is normally an average of 10 to 15 for those months.

Discussing golf play in general during the Golf Commission meeting June 17, Chairman Paul Klotz shared his concern that golfers are motivated more by cost than other factors when choosing a course any given day. Internet sites such as GolfNow.com are feeding that bargain hunting, Bratcher said.

“I get a lot of feedback that says players are just looking for the best buy they can get, and they’ll sometimes sacrifice quality of course to get that,” Klotz said. “And while Internet pricing pressure might be new to golf, it isn’t new to the world, and it’s a fact of life we need to contend with.”

If the city maintains its support for Juniper’s mortgage — about $405,000 annually — it will be paying until 2033, with a reduction of $55,000 beginning in 2026. That possibility, and taxpayers’ reaction to it, is a matter of concern for Golf Commission members.

“It’s not just about the numbers. There’s something less tangible that Juniper brings to the community, and I’m not sure people are aware of that,” Klotz said.

Bratcher mentioned the destination golfers who come to Central Oregon for the express purpose of golfing Juniper, a number he estimated at 1,200 in 2012. But the group agreed that without data to support the economic impact, it’s difficult to determine the exact benefits.

A market survey would be needed to figure out Juniper’s broader benefit to the community, Witcosky said, and he doesn’t see much reason to pursue that now.

“Down the road, when the debt is paid down and if the city wants to consider selling the course, then it makes sense to find out Juniper’s impact so we can use that to interest buyers,” he said.

The Redmond City Council will be asked to approve the supplemental budget amount for Juniper at its Tuesday meeting.

“Juniper puts Redmond on the golfing map, and at some point it will be an absolute asset to the city, not a liability,” Klotz said. “But right now some people see it as a private facility asking the city to pay for its golf — which is wrong. Juniper is a city property.”

— Reporter: 541-548-2186, lpugmire@bendbulletin.com