City of Bellingham Parks and Recreation Committee

The Bellingham Parks and Recreation Committee unanimously approved a 5% green fee increase for Lake Padden Golf Course, exceeding the previously authorized 3% annual limit and requiring Council approval. The increase is driven by state-mandated wage increases, rising utility costs, and inflation, and is expected to generate an additional $100,000 annually in revenue. Despite the increase, Lake Padden will remain the lowest-priced golf course in Whatcom County. The golf course continues to show strong financial performance, with revenue increasing by $1 million since 2020. However, 2025 marked the first year the course showed decreased profitability due to rapidly rising payroll costs, particularly from state-mandated salary increases for exempt employees. The course's four key salaried positions saw their combined annual salaries jump from $69,000 in January 2025 to $80,000 in January 2026. Premier Golf management presented an optimistic outlook for 2026, highlighting the successful integration of new technology and expanded programming. The course served 44,000 rounds in 2025, up from 39,000 in 2023, with 83% of visitors coming from Whatcom or Skagit counties. New TrackMan range technology will be installed to attract both golfers and non-golfers, potentially expanding the course's market reach from the typical 7-10 mile radius to 25-30 miles.

**AB 24814 - Golf Course Fee Resolution:** - **Vote:** 3-0 to recommend approval - **Staff Recommendation:** Increase green fees by 5% (exceeds normal 3% threshold) - **Financial Impact:** Expected $100,000 additional annual revenue - **Key Details:** Maintains Lake Padden as lowest-priced course in county; junior rates will not be increased per Parks and Recreation Advisory Board recommendation from November 2025

**Michael Fosnick, on municipal golf philosophy:** "Municipal golf is not supposed to be a money maker. It's not a private entity. It's supposed to create value for the citizens of Bellingham and Whatcom County." **Michael Fosnick, on staff retention challenges:** "I feel like our superintendent is probably being recruited right now for a job that's going to pay him 20% more than he's making right now." **Michael Fosnick, on the TrackMan technology impact:** "The TrackMan technology will be the only thing in Whatcom County we will have it. So we anticipate a lot of growth, a lot of visits from people all over the county and maybe even some from Snohomish County because it's really truly a game changer for us." **Committee Member Hammill, on facility integration:** "I think your vision on integrating the mountain bike community and the park users is spot-on. That is a gem. It is beautiful setting and it would be great if we can get more people into this public amenity that largely maybe don't know about it." **Michael Fosnick, on revenue diversification:** "We want to be more integral with the parkgoers and the mountain bike community. We want to create a gathering space, a warm welcoming space that people from the park specifically, mountain bikers can come down."

# Lake Padden Golf Course Fee Increase — A Revenue Challenge Amid Rising Costs ## Meeting Overview The Bellingham City Council's Parks and Recreation Committee convened on Sunday, January 26, 2026, at 1:45 p.m. to consider a single but significant item: a 5% increase in green fees at Lake Padden Golf Course. Committee Chair Edwin "Skip" Williams presided over the meeting, joined by committee members Daniel Hammill and Jace Cotton. The session featured presentations from Parks and Recreation Director Nicole Oliver, Park Operations Manager Steve Janiszewski, and Michael Fosnick from Premier Golf, the company that manages the course under contract with the city. The proposed fee increase — from current rates to approximately $42 for 18 holes before the $6 water conservation surcharge — represents a departure from the normal 3% annual increases the golf course is authorized to implement without council approval. This higher increase requires council authorization and reflects the mounting pressure of state-mandated wage increases, inflation, and operational costs that are outpacing normal revenue growth. What emerged from the 28-minute meeting was a picture of a golf course operation that has been remarkably successful in generating revenue — up nearly $1 million from 2020 to 2025 — but now faces cost pressures that threaten its ability to remain financially self-sustaining while keeping golf affordable for local residents. ## The Financial Picture — Success Story with Growing Challenges Steve Janiszewski opened the presentation by walking through the golf course's complex financial structure. The operation actually consists of two separate budgets: Premier Golf's operating expenses of $1.6 million, which includes payroll, management fees, and day-to-day operations, and the city's budget covering administrative support, utilities, and capital reinvestment. "The golf course budget is slightly over $2 million in expenditures with 2.45 in projected revenue," Chair Williams noted in his opening remarks. "And if this resolution is passed, it will increase revenues by an estimated $100,000 per year." The revenue growth story is indeed compelling. Janiszewski showed that the course has generated nearly $1 million more in revenue in 2025 compared to 2020 — a dramatic increase driven by improved course conditions, expanded programming, and what Michael Fosnick described as "a really good weather year" that saw rounds increase from 39,000 to 44,000 between 2024 and 2025. But the success story comes with a caveat that became the central theme of the meeting: operating costs are rising faster than the traditional 3% fee increases can accommodate. "Obviously, it costs more to operate a golf course when you're generating more revenue," Janiszewski acknowledged, setting up the justification for the higher fee increase. ## State Mandates and the Payroll Squeeze The most compelling argument for the 5% increase came from Michael Fosnick's detailed breakdown of wage pressures. Premier Golf employs what Fosnick calls the "core four" — a superintendent, mechanic, food and beverage director, and general manager — who work as salaried employees alongside seasonal minimum-wage staff. State-mandated salary increases for exempt employees have created significant budget pressure. "From 23 to 24, fairly large jump, 57,000 to 67,000," Fosnick explained, showing how salary costs have escalated. "If you look at what it went from January 25 to 26, 69,000 to 80,000." The payroll percentage of revenue tells the story starkly. In 2023, payroll represented 39% of revenue against a budgeted 45%. "That's way to go team," Fosnick said. But by 2025, payroll had climbed to 44% of revenue on a budget of 44%. "So what we're concerned about is we just can't keep up with the payroll to revenue." Fosnick painted a picture of skilled employees being recruited away by competitors offering 20% more in salary. "I feel like our superintendent is probably being recruited right now for a job that's going to pay him 20% more than he's making right now. Same thing with our mechanic," he said. The challenge is retaining quality staff while managing costs in a municipal operation that prioritizes affordability over profit maximization. ## Keeping Municipal Golf Affordable — The Competitive Landscape A key theme throughout the presentation was the golf course's commitment to remaining the most affordable option in Whatcom County. Fosnick showed a comparison chart demonstrating that even with the proposed 5% increase, Lake Padden would remain significantly cheaper than competitors like Loomis Trail, Avalon Lakes, and Sun Valley. "Municipal golf is not supposed to be a money maker. It's not a private entity. It's supposed to create value for the citizens of Bellingham and Whatcom County," Fosnick emphasized. "So, we're very proud of the fact that we put out a very good product, but we don't pass that rate on to our local golfers." The proposed in-season rate of $48 (including the $6 water conservation fee) would still be the lowest in the county. For annual pass holders who play frequently, the cost per round can drop to just $12-13 — a significant value for regular golfers. Council Member Cotton pressed Fosnick on demand elasticity: "at what level of fee increases do you start to see a decline in people using the course?" Fosnick pointed to Seattle's municipal courses, which have implemented increases of 6%, 6%, 6%, 4%, 4% without significant ridership decline, suggesting there's room for modest increases while maintaining affordability. ## Water Conservation and Capital Investment An important subplot in the meeting involved the $6 water conservation capital reinvestment surcharge that was added in July 2023 and increased from $4 to $6 in 2025. This fee generates approximately $100,000 annually and is earmarked specifically for capital improvements, with the aging irrigation system as the top priority. Janiszewski showed that the surcharge has generated $253,395 since July 2023. "We would love to use that for the highest priority capital reinvestment project. And our highest priority right now is to replace the irrigation system which is at the end of its useful life." Council Member Hammill pressed on the funding source for irrigation system replacement, noting the magnitude of such a project. Janiszewski acknowledged the challenge: "it's basically what's underground. The new piping will last a hundred years. The old piping is failing. So when you have a failing irrigation system, you have water leaking essentially." The response revealed the city's intention to build enterprise fund capacity to handle major capital improvements rather than seeking general fund support. "Our intention is to try and build up continue to build a revenue stream so that the enterprise fund can handle the enterprise maintenance and improvements," Janiszewski said. ## Innovation and Future Revenue Streams The most exciting part of the presentation focused on new revenue-generating initiatives, particularly the introduction of Trackman technology to the driving range. This ball-tracking system allows golfers to play virtual golf and participate in technology-enhanced leagues and events. "The Trackman technology will be the only thing in Whatcom County we will have it," Fosnick said enthusiastically. "So we anticipate a lot of growth, a lot of visits from people all over the county and maybe even some from Snohomish County because it's really truly a game changer for us." Fosnick cited survey data showing that three out of four people prefer range technology and will pay an extra $2-4 for it. In Seattle, similar top-tracer technology generated $668,000 in additional revenue at three driving ranges in 2024. The broader vision extends beyond golf to creating a community gathering space. "We want to be more integral with the parkgoers and the mountain bike community. We want to create a gathering space, a warm welcoming space that people from the park specifically, mountain bikers can come down," Fosnick explained. Plans include seating area upgrades and menu improvements designed to attract non-golfers who use Lake Padden Park. ## Community Impact and User Demographics Council Member Hammill inquired about the user base, particularly out-of-county visitors. The course tracks users through license plate monitoring and is interested in implementing cell phone data tracking to better understand visitor patterns. Janiszewski provided data from a Placer AI report showing that 83% of 2025 visitors came from Whatcom or Skagit counties, indicating the course primarily serves regional residents rather than destination golfers. The course has also successfully integrated disc golf, though Fosnick noted it provides more recreational value than revenue: "it's still a really feel-good thing and it does provide more opportunities for non-golfers to use the Lake Patton property, golf course property for disc golf. So, I would say it's a win. It's just never really going to bring in a lot of financial benefit compared to regular golf." ## Junior Golf and Community Programming A highlight of the presentation was the course's success with junior programming. "The Bellingham Lake Padden golf course is a hot bed for junior golf. We have PGA Junior Leagues which have gone to national tournaments," Fosnick reported. The lesson program has grown dramatically, generating over $100,000 in lesson revenue in 2025. The Parks and Recreation Advisory Board had specifically recommended that junior rates not be raised as part of the fee increase, demonstrating the city's commitment to keeping golf accessible for young people. ## Committee Discussion and Approval The committee's discussion was notably thorough, with members asking detailed questions about user demographics, demand elasticity, payroll pressures, and capital funding. Council Member Hammill was particularly engaged, asking about disc golf integration, user tracking, and irrigation funding. Hammill also praised the vision of integrating mountain bikers and park users: "I think your vision on integrating the mountain bike community and the park users is spot-on. That is a gem. It is beautiful setting and it would be great if we can get more people into this public amenity that largely maybe don't know about it." When Chair Williams called for a motion, Hammill immediately moved to approve the resolution. The motion carried 3-0 without opposition or further debate. ## What's Ahead The resolution now moves to the full City Council for consideration at that evening's meeting. If approved, the 5% increase would take effect for the 2026 golf season, generating an estimated $100,000 in additional annual revenue to help offset rising operational costs. The broader story emerging from this meeting is of a municipal golf operation working to balance multiple competing demands: keeping golf affordable for residents, maintaining financial sustainability, retaining quality staff in a competitive market, and investing in capital improvements for long-term viability. The 5% increase represents a strategic adjustment to address immediate cost pressures while positioning the course for continued growth through innovative programming and community engagement. As the meeting concluded at 2:13 p.m., the committee had approved not just a fee increase, but endorsed a vision for Lake Padden Golf Course as a community hub that serves golfers and non-golfers alike while maintaining its position as Whatcom County's most affordable golf option.

## MODULE S1: STUDY GUIDE **Meeting ID:** BEL-CON-PRC-2026-01-26 A structured study guide helping readers understand the meeting's content and context. ### Meeting Overview The Bellingham City Council Parks and Recreation Committee met on January 26, 2026, to consider a resolution establishing fees for the Lake Padden Golf Course. The committee approved a 5% green fee increase for 2026, exceeding the typical 3% annual limit due to rising operating costs. ### Key Terms and Concepts **Green Fees:** The cost golfers pay to play a round of golf at the course. At Lake Padden, this was proposed to increase from approximately $42 to $48 for 18 holes (including the $6 water conservation charge). **Water Conservation Capital Reinvestment Surcharge:** A $6 fee added to each round of golf since July 2023 to fund major capital improvements, particularly irrigation system replacement. This fee generates about $100,000 annually. **Premier Golf Management:** The private company (formerly Troon) that operates Lake Padden Golf Course under contract with the city. They handle day-to-day operations while the city maintains ownership. **Enterprise Fund:** A city budget mechanism where the golf course operates like a business, with revenues expected to cover operating expenses rather than relying on general city funds. **Trackman Technology:** New driving range technology being installed that tracks golf ball flight and allows virtual golf games. Lake Padden will be the only course in Whatcom County with this technology. **Core Four:** The four salaried employees at the golf course - general manager, superintendent, mechanic, and food & beverage director - whose wages are subject to state-mandated salary increases. **Management Fee:** The annual fee (approximately $185,000) paid to Premier Golf for operating the course, including base management costs plus performance incentives. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Edwin H. "Skip" Williams | Committee Chair, Bellingham City Council Fourth Ward | | Daniel Hammill | Committee Member, Bellingham City Council Third Ward | | Jace Cotton | Committee Member, Bellingham City Council At-Large | | Nicole Oliver | Parks and Recreation Director, City of Bellingham | | Steven Janiszewski | Park Operations Manager, City of Bellingham | | Michael Fosnick | Director of Operations, Premier Golf Management | ### Background Context Lake Padden Golf Course has been a municipal golf facility serving Bellingham and Whatcom County for decades. Since 2018, the city has contracted with Premier Golf (formerly Troon) to manage daily operations while maintaining public ownership. The course has seen remarkable success, with revenue growing from approximately $1.4 million in 2020 to over $2.4 million in 2025. However, this success comes with challenges. State-mandated wage increases, particularly for salaried employees, have outpaced the course's ability to keep up with traditional 3% annual fee increases. The course's irrigation system is also nearing the end of its useful life, requiring significant capital investment. The golf course operates as an enterprise fund, meaning it must generate enough revenue to cover all operating costs and ideally fund its own capital improvements. The proposed 5% increase reflects the reality of inflation, utility rate increases, and mandated wage adjustments that have pushed operating costs higher than anticipated. Despite the increase, Lake Padden will remain the lowest-cost 18-hole golf option in Whatcom County. ### What Happened — The Short Version Committee Chair Williams opened the meeting by explaining that Parks and Recreation was requesting a 5% green fee increase instead of the usual 3% maximum. This increase would generate an estimated additional $100,000 per year in revenue. Park Operations Manager Steve Janiszewski presented the budget overview, showing that the golf course has two separate budgets - Premier's operating expenses of $1.6+ million and the city's portion covering utilities, capital maintenance, and inventory. He highlighted the course's revenue success, growing by $1 million since 2020. Premier's Michael Fosnick then explained why the larger increase was necessary. State-mandated salary increases for the "core four" salaried employees jumped dramatically - from $57,000 to $67,000 to $80,000 in recent years. These wage increases were outpacing the course's ability to keep up with 3% annual fee increases. Fosnick also presented exciting new developments: Trackman driving range technology that will be unique in Whatcom County, plus plans to better integrate the facility with Lake Padden Park users, especially mountain bikers. Committee members asked questions about user demographics (83% from Whatcom/Skagit counties), disc golf integration, and funding sources for eventual irrigation system replacement. After discussion, Council Member Hammill moved to approve the fee increase, and the motion passed 3-0. ### What to Watch Next • The full City Council will consider this resolution at their regular meeting, likely the same evening • Implementation of the new Trackman driving range technology and its impact on usage and revenue • Future discussions about funding the irrigation system replacement, which is the golf course's highest capital priority ---

## MODULE S2: FLASH CARDS **Meeting ID:** BEL-CON-PRC-2026-01-26 **Q:** What percentage increase in green fees did the Parks and Recreation Committee approve? **A:** 5%, which exceeds the typical 3% annual limit previously approved by City Council. **Q:** Who operates Lake Padden Golf Course on a day-to-day basis? **A:** Premier Golf Management (formerly Troon) operates the course under contract with the city. **Q:** How much additional revenue will the 5% fee increase generate annually? **A:** An estimated $100,000 per year. **Q:** What is the water conservation capital reinvestment surcharge and how much does it cost? **A:** A $6 fee added to each round since July 2023 to fund capital improvements, generating about $100,000 annually. **Q:** What are the "core four" positions at the golf course? **A:** General manager, superintendent, mechanic, and food & beverage director - the four salaried employees. **Q:** How much has golf course revenue grown since 2020? **A:** Revenue has grown by approximately $1 million, from about $1.4 million in 2020 to over $2.4 million in 2025. **Q:** What new technology is being installed at the driving range? **A:** Trackman technology that tracks golf ball flight and allows virtual golf games - the only such system in Whatcom County. **Q:** How many rounds of golf were played at Lake Padden in 2025? **A:** 44,000 rounds, up from 39,000 in 2023. **Q:** What percentage of golf course users come from Whatcom or Skagit counties? **A:** 83% according to 2025 data from Placer AI reports. **Q:** Even with the fee increase, how does Lake Padden compare to other local golf courses? **A:** It will remain the lowest-priced 18-hole golf option in Whatcom County. **Q:** What is the golf course's highest capital priority? **A:** Replacing the aging irrigation system, which is at the end of its useful life. **Q:** What was the total golf course budget for 2025? **A:** Approximately $2.385 million total, split between Premier's operating expenses and city costs. **Q:** How much does the city pay Premier annually in management fees? **A:** Approximately $185,000, including base fees and performance incentives. **Q:** What vote was taken by the committee? **A:** Council Member Hammill moved to approve the fee increase, and it passed 3-0. **Q:** What integration opportunity did committee members and staff discuss? **A:** Better integrating the golf course restaurant and pro shop with Lake Padden Park users, especially mountain bikers. ---