MORAVIA (AP) — The state’s first taxpayer-backed resort is struggling financially and has been the subject of a variety of criticism since it opened in September.

The Honey Creek Resort State Park at Rathbun Lake was the subject of an extensive budget summit last week that included park operators, the Iowa Department of Natural Resources, and the Natural Resource Commission.

Among the problems cited: too many vacancies, chronically slow restaurant service and shower heads flying off pipes in guest rooms.

State officials and operations managers maintain that the resort’s longterm future is good. The four-month-old resort, though, has already used about $200,000 of the $500,000 in bond reserves intended to cover early cash shortages, after being plagued by construction delays, floods and a poor economy.

“You are perilously close to being out of cash,” Elizabeth Garst of Coon Rapids, a member of the resource commission, told representatives of the DNR and Central Group Cos., the St. Cloud, Minn.-based firm in charge of day-to-day operations.

Lee Fundanet, who leads operations for Central Group resorts in the Midwest, said the project has been extremely challenging.

“It’s just taking hold for us,” he said. “We have high hopes and expectations.”

DNR Director Richard Leopold told commissioners he plans a series of meetings to set timelines for progress at Honey Creek.

Commissioners ordered another extended briefing by Central Group in February.

Robert Pace, Central Group’s chief executive officer, said the resort was still performing well. He said the resort’s troubles have been mangified by the economy and by its opening date, which was late in the vacation season.

“We’re faring as well as some of our large resort competitors in this market,” Pace said.

Taxpayers would have to foot the bill for construction bond payments if the resort fails.

But both Pace and Leopold insist the resort will survive into the warm weather season.

Occupancy at Honey Creek’s 105-room lodge was 30 percent through Nov. 30, much lower than the 44 percent average called for in the current budget.

Customers have paid an average daily rate of $94.92, less than the budgeted $102.65.