IVGID Finance Director, Paul Navazio’s, 9/9/20 presentation on punch card utilization contains disturbing revelations that our beaches are essentially under water, and not from global warming or rising lake level. The problem stems from complications relating to punch cards and the fact that some residents of the district don’t have beach access. Their facility fees should not be used to support the beaches. Mr. Navazio’s presentation confirmed that, in fact, just last year nearly a half a million dollars of punch card use that should have been deducted from the stated total beach revenue, was instead deducted from the community services fund, resulting in almost an extra half a million in the beach fund and half a million less to support the community services to which Crystal Bay residents have access. It’s not that easy to understand, but it is laid out in painful detail in the presentation. The $125 of our facility fees that was supposed to cover the beach expenses last year was just not enough. In anticipation of the need to replace the Burnt Cedar pool, the Board has shifted the division of the rec fees so that this year $500 will go to the beach fund. But now it’s evident that unless GM Winquest has either cut expenses or alternatively increased revenues by half a million dollars, at least a portion of the increased beach fee will be needed  just to cover this year’s operating expenses (and possibly more to cover prior years’ “indiscretions”). Now that this more than slightly questionable accounting sleight of hand has come to light, going forward we need to have several questions answered:

How does Mr. Navazio plan to “make it right” this year?

How much of the fund balance in beaches actually should be in Community Services?  If we don’t return it, how much do we owe to Crystal Bay residents?

Since IVGID only recently revealed the details of punch card accounting, how long has this practice been going on? Ever since we’ve had punch cards? That would be at least 22 years. 

Mr. Navazio has suggested using 2 separate punch cards, 1 for beach use and 1 for the other venues to avoid the problem in the future. Is it worth it just to keep our Crystal Bay neighbors from accessing the beaches when we let thousands of strangers on them? Maybe it’s time to consider giving the 400 or so residential parcels in Crystal Bay beach access.

Hopefully our Audit Committee and Ordinance 7 Committee will make recommendation to the Board to straighten out this mess.