Cedar Hills borrowed $4.6 million for golf course renovation as its older golf bonds remain on the tax rolls

Cedar Hills' golf course ended fiscal 2025 with a stronger balance than it started. The Golf Fund, which covers the course and its event center, took in $2,441,668 and spent $1,884,393, according to the city's audit. Its fund balance rose $557,275 to $1,048,741, with no transfers in from other funds. ^[1]

The course's older debt is accounted for separately. The Golf Debt Service Fund received $347,506 in property taxes in fiscal 2025 and paid $275,000 in principal and $88,745 in interest on the city's 2012 general obligation bonds. Those bonds had $3,105,000 in principal outstanding at June 30, 2025. ^[1][2]

Choosing a contractor

A Dec. 2, 2025 staff report says the city received three bids by the Nov. 21 deadline and recommended Verdes Sports Construction as general contractor. The work would replace the course's failing PVC irrigation pipe with fused HDPE pipe, enlarge tee boxes, remove or update bunkers, fix an eroding path on hole 11 and improve drainage. ^[3]

Staff put the cost at approximately $4.6 million, including oversight by GPS Golf and John Fought Design. The report lists $171,500 in GPS Golf irrigation consulting fees and an estimated $105,000 in design consultant fees. Staff did not recommend an alternate bid of about $600,000 to restore hole 15 to a par 5. ^[3]

City Manager Chandler Goodwin told the council the irrigation system dates to 2002, according to the minutes. After council members asked for data on the hole 11 erosion, Goodwin said staff would ask the contractor to isolate that portion of the bid and return to the council. ^[4]

The council voted 5–0 to approve Verdes' proposal and to authorize the mayor and staff to negotiate and sign a contract. The Ledger has not seen the signed contract. ^[4]

The bonds

On Feb. 3, 2026, the council voted 4–0, with Council Member Kelly Smith absent, to approve Resolution No. 02-03-2026B authorizing sales tax revenue bonds for the golf course improvements. According to the minutes, staff discussed up to $5 million over 30 years, a direct placement with a local bank and annual debt service of about $300,000. ^[5]

The minutes say the bonds would be repaid from golf course revenues and fund balance, with sales tax as a backstop if needed. Goodwin said the intent is that neither sales tax nor the General Fund pay the debt. ^[5]

The fiscal 2027 budget's debt table lists a $4,628,000 golf course sales tax revenue bond issued March 12, 2026, with a payoff date of March 1, 2056. The Golf Fund budget for fiscal 2027 lists $90,000 in principal and $239,045 in interest on that bond. ^[6]

Spending and progress

The fiscal 2027 Golf Fund budget lists $2,100,000 in capital outlay and a $2,500,000 draw on fund balance, for total resources of $4,763,500. The budget narrative describes $2,400,000 for the renovation, "funded through bonding and a drawdown of fund balance." ^[6]

At the Aug. 18, 2026 meeting, staff reported about six holes remained and that staff was working through issues with the contractor. A planned golf simulator was put on hold until the renovation is finished, citing unknowns in the project and unexpected dirt purchase costs, according to the minutes. ^[7]

On Sept. 1, Recreation Director Greg Gordon said he hoped the project would be finished in October. He said hole 9 was in the worst shape because of excess water and would be closed, with hole 10 opened in its place, according to the minutes. ^[8]