Canyon Lake homeowners are voicing their concerns over the financial performances of the POA’s two restaurants: the Lighthouse Restaurant and Country Club Bar & Grill. Both restaurants are subsidized by annual dues paid by the homeowners.
According to financial reports, the cost to members to operate the Lighthouse Restaurant was planned to be $303,826 for the 2024/2025 fiscal year (May 2024 to May 2025). The year-to-date costs to members as of December 2024 were $340,000, with four months remaining in the fiscal year.
The Country Club Bar & Grill reported even greater losses. The cost to members to operate the Country Club Bar & Grill was planned to be $292,779 for the 2024/2025 fiscal year. The year-to-date costs to members as of December 2024 were $368,000.
By the end of the fiscal year, the combined cost to members for both restaurants could reach nearly $1 million, exceeding the planned budgeted subsidy by approximately $400,000.
In response to the financial strain on both restaurants, discussions have emerged focusing on potential solutions such as improved management strategies, menu adjustments, marketing efforts, or even reconsidering operational structures, while others question whether the restaurants should continue to operate at such losses. Many residents have raised issues related to mismanagement, overstaffing, inconsistent operating hours, menu selections, and pricing.
At a recent budget meeting, POA Director Alex Cook stated that the Lighthouse Restaurant losses will be offset by the revenue from the events portion of the lodge budget, such as weddings and room rentals. However, these events generated only $9,540 in revenue from May through December 2024, according to the POA.
“The board is aware of the budget overruns caused by multiple factors,” POA President Bill Van Vleet said. “In response, a number of corrective actions have been put in place with the objective of restoring performance to the budget by fiscal year end.”
According to the proposed Annual Budget for the 2025/2026 fiscal year, the Country Club Bar & Grill is budgeted to cost the members $388,462, while the Lighthouse Restaurant is budgeted to cost the members $254,078. If the restaurants do not go over the planned budgeted subsidy as they have this fiscal year, the costs to members will be $642,540 to operate both restaurants in the 2025/2026 fiscal year.
According to the proposed 2025/2026 annual budget, residents are likely to see a $17 monthly increase in dues beginning on May 1. The board of directors will review the final budget and vote to adopt it at the Regular Session Board Meeting on Tuesday, March 2. Residents can provide feedback at the meeting or by emailing the board at [email protected].
