Lago Vista's golf course got $2.8 million in public subsidies

Lago Vista's city-owned golf course has cost more to run than it took in every year of the city's audits from 2018-19 through 2024-25.^{1,2,3,4,5,6,7} From the 2019-20 through 2024-25 budget years, the General Fund sent the golf fund a combined $2,848,694, the total of six yearly transfers the city's audits report (our addition).^2,3,4,5,6,7 In 2018-19, the golf fund also recorded $2,377,659 in transfers from other city funds, and the records we reviewed do not say what that money was for.^1,8 On September 17, 2026, the City Council voted 4 to 3 to adopt a 2026-27 budget with a $170,000 "operating subsidy/transfer" for the golf fund.^9,10 The city's Debt Service fund, which is paid for with property taxes, also repays the 2006 bonds the city used to buy a golf course and the 2024 bonds behind the course's new $3,615,632.23 irrigation contract, part of a reclaimed-water system the city says "relies on the golf course as a primary discharge point."^10,11,12 In 2025, as the city's Golf Course Advisory Committee prepared its annual report to the council, a member urged "a strong closing statement that paints a positive picture of the future."^13,14 The committee later dropped a slide on the course's revenue history that committee member Susie Mumford called "a negative slide."¹⁵

The city's budget year runs from October 1 through September 30.¹⁶ The city's 2018-19 audit says the golf course is reported as a business-type activity "since the fees charged to customers cover the cost of services provided."¹ The golf course fund covers "the government's municipal golf course services, including the pro shop, snack bar, and golf course." The 2025 audit says "The City strives for its proprietary funds to break even."⁷ The city also calls the course "absolutely essential to the City's effluent disposal process permitted by TCEQ."¹⁷

How the city came to own two golf courses (2008 to 2010)

In the 2007-08 budget year, the city spent $2,284,692 from its 2006 certificates of obligation, a type of city bond, on an account called "Golf Course Acquisition."¹¹ The 2010-11 budget book shows that money had been "Transferred to #7102," the acquisition account, from a water treatment plant expansion project.¹⁸ The 2006 certificates totaled $6,515,000 at 4.13% interest and will be paid off in 2027.² The city still owed $930,000 on them on September 30, 2025.⁷ The records we reviewed do not say how much of each payment is for the golf course and how much is for the issue's other projects.¹⁰

By June 30, 2010, the city had spent $696,387 on "HLGC Acquisition and Improvements," for Highland Lakes Golf Course. The city also took out a $402,000 Tax Note, Series 2010, that its budget book labels a "GOLF COURSE PROJECT." The same budget book says the golf budget included a $73,196 transfer to the Debt Service Fund for "the short term Tax Note issued for the purchase of the Highland Lakes Golf Course." It refers to "prior action by the City Council to acquire the Highland Lakes Golf Course" but gives no date, vote, or purchase price.¹⁸

Subsidies, a closing, and a sale (2015 to 2019)

The 2015-16 budget book said the General Fund would need to "contribute $323,523" to the golf fund "in the current fiscal year," 2014-15, and that for 2015-16 the city would use "a transfer from the Utility Fund instead of the General Fund." It said the golf course serves "a dual purpose," including as "an effluent application site."¹⁹ On May 4, 2017, the council voted 4 to 3 to add $150,000 to golf funding, for $505,000 in all. On May 18, 2017, it voted 5 to 1 "to approve the additional $150,000 for the golf course funding." The minutes we reviewed do not say whether the second vote added more money.²⁰ On July 20, 2017, the council voted 4 to 3 to fund both courses to the end of the budget year and close Highland Lakes on October 1, after first rejecting the same motion 3 to 4. A motion to close both courses failed 3 to 4.²¹ On September 21, 2017, the council adopted the 2017-18 budget 4 to 2, with a $555,130 golf subsidy.^22,23 On October 19, 2017, it approved a "Declaration Easement" that the minutes say was meant to give the city "the ability to control the effluent disposal on the golf courses."²⁴ On November 16, 2017, it re-created the Golf Course Advisory Committee, which "shall act in an advisory capacity only."²⁵

The city's 2018-19 audit lists $515,636 in cash from the sale of HLGC, the city's abbreviation for Highland Lakes Golf Course. The golf fund's statement that year also shows a $224,194 "(Loss) on Sale of Real and Personal Property," without naming the property. The same statement shows $2,377,659 in "Non-Operating Transfers In." The audit does not say where that transfer came from or what it was for. Its transfers note lists only each fund's totals, and the General Fund's transfers out that year added up to $1,294,263. So at least $1,083,396 of the golf fund's $2,377,659 came from a city fund other than the General Fund (our subtraction).¹ The city's 2020-21 budget book lists it on the golf fund's pages as two transfers, $507,000 from the General Fund and $1,870,659.32 from the Utility Fund, which add up to the audit's figure (our addition). The Utility Fund's own pages in that book show no transfer to either golf course that year. The General Fund's pages show $546,603.24 to the golf course.⁸ The records we reviewed do not say what either transfer was for.^1,8 The $2,848,694 total above uses only audited figures, so it starts in 2019-20, the first year the audits we reviewed name the General Fund as the source.^1,2

What the audits show (2019 to 2025)

The city's audits report the golf fund's revenue, expenses, and operating loss each year. Starting with 2019-20, they also say how much the General Fund sent it.^{1,2,3,4,5,6,7} The 2021 audit's transfers table is headed 2018, but its figures match that audit's other 2021 statements.³

The expenses include depreciation, which the 2025 audit describes as the cost of assets "allocated over their estimated useful lives."⁷ Even without depreciation, the course spent more than it took in every year, by $46,932 in 2020-21 at the least and by $625,601 in 2022-23 at the most (our subtraction).^{1,2,3,4,5,6,7} Revenue fell to $519,484 in 2022-23 and rose to $909,075 in 2024-25.^5,7 Greens fees rose from $181,307 to $351,940 over those two years.¹⁰ The largest cost is salaries and wages, $839,472 in 2024-25.⁷

Over the six years the audits name the General Fund as the source, 2019-20 through 2024-25, the course's operating losses came to $2,892,171 and the transfers came to $2,848,694 (our addition). The two totals measure different things, because $1,276,251 of those losses was depreciation (our addition). Without depreciation, the losses came to $1,615,920 (our subtraction). The audits' cash flow statements add depreciation back when they count the cash the course used. They show that money from other city funds covered all the cash the course used each year for operations, equipment, and debt payments, and the golf fund's own cash never topped $1,300. The statements also count the yearly growth in what other city funds owed the golf fund as cash used, and that growth came to $601,927 over the six years (our addition).^2,3,4,5,6,7 On September 30, 2025, the audit listed $622,464 that the General Fund owed the golf fund. The audit says balances between funds come mainly from time lags in recording transactions and making payments. The golf fund's balance sheet counts that amount among its assets.⁷

The irrigation rebuild begins (2022 to 2025)

On September 6, 2022, the council voted unanimously to pursue a certificate of obligation for a golf course irrigation system upgrade.²⁶ The Series 2024 certificates list "effluent dispersal irrigation" among their uses.²⁷ On June 6, 2024, the council voted 5 to 1 to award the project to Duininck Golf for $4,713,590.00.²⁸ On February 10, 2025, it voted 6 to 0 to cancel that contract "because it is void under state law."²⁹ An earlier Watchdog story, Lago Vista's outside legal bills grew 17 times in two years, noted a closed session on April 3, 2025, about "pending or contemplated litigation related to golf course irrigation contract with Duininck, Inc."³⁰

How the numbers reached the council (2025)

The committee's June 24, 2025, minutes say it "Discussed changes to the initial slides" for its annual report.³¹ On the meeting video, a committee member said the report needed "a strong closing statement that paints a positive picture of the future." Committee member Larry Russell, who presented the report, said "we want to be cautious because we have not defined yet what success is." A member said "we want whoever" receives the report "to be very supportive," and the rest of that sentence is not clear on the city's recording. Another committee member answered a staff forecast of a profit with "But that's all a projection." A member replied, "We're not calling it a fact."¹³

At the same meeting, Russell said his chart of the course's operating revenue and expenses left out depreciation, which makes the losses look smaller than the audited totals. He said he "wasn't trying to show a rosy picture" and that the chart "isn't trying to hide anything."¹³

On July 22, 2025, Russell asked the committee whether that revenue slide was "valuable information to show." One committee member said, "I think leave it in." Another wondered whether the slide would "open the door to a lot of questions that are going to distract" from the presentation.¹⁵ Mumford, whom the minutes list among the members present, asked, "Is it necessary to go all the way back to 2018?"^14,15 She said "that just is not a really good picture to show" and asked instead to see "the last two years monthly, what the rounds have done." She said, "I think that's a negative slide," and that it "creates more of a negative look than a positive." Russell agreed to drop it. He said the committee had heard for years that "the golf course has been losing money," that the data showed it "doesn't lose a million dollars a year," and that "we're going to want to show this data when we're prepared to do that." Later in the meeting he said that with "removing that one slide, then it's pretty much as is."¹⁵ The committee approved the report that night, and the minutes say "Larry will present to City Council on Thursday, August 7th."¹⁴

Draft 9 of the report, dated July 14, 2025, and included in the committee's July 22 packet, had a slide titled "Lago Vista Golf Course" that said "Revenue continues to increase from FY23 low," with a chart labeled "LVGC Operating Rev/Exp."³² The deck presented to the council on August 7, 2025, does not include that slide.³³ Russell presented the report that day, the council's minutes say.³⁴ The council saw a slide saying course conditions were "still well below competition," slides comparing Lago Vista's fees and rounds with other municipal courses, and a national finding of golf "Participation up 38%."³³ Russell told the council the "numbers so far looks like we're going to be up" on revenue, and on the figures, "I'll leave that to Greg."³⁵

A new contract and a new subsidy (2025 and 2026)

On August 21, 2025, the council approved a $55,000 irrigation redesign contract with the system's original designer.^14,36,37 The council's September 18, 2025, minutes list the budget change "Transfer to golf fund increased to $350,000."³⁸ The council adopted the 2025-26 budget on September 25, 2025.³⁹ On January 15, 2026, it voted 7 to 0 to award the new irrigation project.¹⁶ Diamond Golf International's bid was $3,615,632.23, the amount the city's budget book lists for the construction contract.^10,12 The budget book's project summary shows $4,095,000 set aside from the 2024 certificates and $3,804,966.23 spent or committed. The summary says its amounts "have not been independently reconciled or validated by the Finance Department."¹⁰ City staff call the irrigation replacement "the most critical project" in the city's capital plan.¹² On February 3, 2026, a staff report to the committee said the course should "come close to breaking even" in 2026-27.⁴⁰

The former Highland Lakes property (2026)

On April 2, 2026, Council Member Paul Prince said the council was authorizing City Manager Charles West "to investigate potential acquisition of the property formerly known as the Highland Lake Golf Course."⁴¹ On July 2, 2026, it discussed the purchase in a closed session and took no action.⁴² On July 16, 2026, it voted 5 to 1, with Saum voting no, to have contracts prepared for 111.62 acres at 20406 Earhart Lane, which the minutes describe as "PARCELS 1-9 WORLD OF RESORTS GOLF COURSE HIGHLAND LAKE EST." The minutes set the limit as "not to accede 1.1 million," spelled that way in the record.⁴³ On August 6, 2026, the council met in closed session on the "Highland Lakes Golf Course" and took no action.⁴⁴ The council minutes we reviewed from August 6 through September 3, 2026, show no vote to buy the property.^44,45,46,47

The 2026-27 budget vote (September 2026)

The city has transferred less than it budgeted for the golf fund in each of the last three audited years.^{5,6,7,48,49,50}

On September 17, 2026, Mayor Pro Tem Norma Owen, Jess Hall, Karen Van Ness, and Paul Prince voted for the 2026-27 budget and its $170,000 golf transfer.^9,10 Mayor Shane Saum, Adam Benefield, and Amanda Chavarria voted against it.¹⁰

What it costs taxpayers

The General Fund that pays the golf subsidy is "supported by property, sales and other taxes, franchise fees, permit fees, charges for service, fines, interest revenues, and administrative fee reimbursements." In 2026-27, the Debt Service fund pays $475,000 in principal and $9,809 in interest on the 2006 certificates. It pays $545,000 in principal and $1,117,125 in interest on the 2024 certificates, which cover the irrigation rebuild and other projects. That fund's budgeted revenue is $4,387,819 in property taxes plus $30,000 in related penalties and interest. The budget message also says the General Fund budget includes a $1.6 million transfer from the Utility Fund to cover "Utility Fund-related debt obligations," without saying which bonds. The budget shows no payment from the Utility Fund to the golf course, on a line reading "UTILITY TRANSFER TO LVGC $0."¹⁰ None of these bond payments appear in the golf fund's audited revenue and expenses.⁷

Where it stands

Draft minutes from the committee's May 26, 2026, meeting say the irrigation project "has begun on the #2 hole" and "should be complete mid October to early November." The same draft minutes say this year "is trending to come in below 200k loss," down from what they call a roughly $900,000 loss three years earlier.⁵¹ Through May 31, 2026, the golf fund's unaudited results show $728,137.67 in revenue and $889,718.91 in expenses. That report shows no General Fund transfer to the golf fund yet, out of the $350,000 budgeted for the year.⁵² In 2024-25, the city's budget book showed no transfer recorded as of August 20, 2025, and the audit later reported $380,000 for that year.^7,50 The city's August 2026 golf operations report counts rounds as member or complimentary play and paid play. It does not count how many different people play.⁵³

What we could not find

• The purpose of the $2,377,659 transferred into the golf fund in 2018-19. The golf fund's pages in the budget book say where it came from, but the Utility Fund's pages show no such transfer. Nothing we reviewed says what it was for.^1,8
• A record of the council's vote to buy either course. The 2010-11 budget book mentions "prior action by the City Council to acquire the Highland Lakes Golf Course" but does not give the vote.¹⁸
• A count of how many different people play the course. The August 2026 report we reviewed counts rounds only.⁵³
• Any payment to the first irrigation contractor, or the city's legal costs on the canceled contract. The minutes we reviewed do not list them.²⁹
• Where the Earhart Lane talks stand. The last closed session we found, on August 6, 2026, ended with no action.^44,45,46,47
• Any General Fund transfer to the golf fund for 2025-26. None appears through May 31, 2026.⁵²

What you can do

• File an open records request with the city for the journal entries and approvals behind the 2018-19 transfers, including the $1,870,659.32 the budget book lists from the Utility Fund, the golf course's monthly reports and membership counts, the committee's 2025 report drafts and emails, and any offers or appraisals for the Earhart Lane property.^8,54
• Speak during public comment at a council meeting, for example to ask about the 2018-19 transfer, by filling out a comment form before the meeting starts.¹²
• Attend the committee's public meetings, which set aside time for citizen comments, and ask members about how the 2025 report was prepared.¹⁴

If you have records on this, you can share them with us at /share-records. We protect your identity and publish the evidence when we can do so safely.

This story replaces our September 24, 2026, story on the golf irrigation contract.