HomeMy WebLinkAbout2011-09-27 Special Minutes - Golf Course Budget WorkshopCity of Tukwila
City Council
Budget Workshop
Location: Foster Golf Links Clubhouse Billy Baroo's Banquet Rooms
Date: September 27, 2011
Begin Time: 6:01 p.m.
End Time: 7:46 p.m.
PRESENT
Electeds: Allan Ekberg, Council President; Councilmembers: Joe Duffie, Joan Hernandez, Dennis Robertson,
Verna Seal, Kathy Hougardy and De'Sean Quinn
Staff Shawn Hunstock, Peggy McCarthy, Rick Still, Derek Speck, Marty O'Brien, Curt Chandler, Warren Orr,
Stephanie Gardner, Dave Johnson, Matt Huff and Kimberly Matej
The Budget Workshop consisted of the following:
Continued Overview and Discussion of the Golf Course 411 Fund
At the August 23, 2011, Budget Work Session, Council determined, prior to a policy decision on the Golf Course,
they would like to receive input from golf staff regarding the options for the Golf Course. Council had requested
staff present scenarios that include balancing the budget and/or reducing the general fund subsidy.
Golf Course Fund 411
Staff gave an overview of the history of Foster Golf Links including operations (golf course, pro shop and
restaurant) and management staff. Monmahon Sharma, the sole proprietor of the restaurant, shared his interest in
the location, fees, investments and community involvement.
Staff provided a summary of factors leading to the current state of the 411 Fund:
General Golf Operations
Supply and Demand
Economy
o Weather Patterns
Bond Payback
Closure of the Course during Construction
Staff reviewed six policy issues relating to balancing the budget and/or reducing the General Fund subsidy to the
Golf Course. Their recommendation follows each item.
1. Maintenance Building
Staff Recommendation: Do not require repayment of the $650,000 that was transferred into the Golf Fund
for half the costs of the Parks and Golf Maintenance Facility.
2. Admission Tax
Staff Recommendation: Temporarily or permanently relieve the Golf Course of paying the City's
Admission Tax.
3. Director's Salary
Staff Recommendation: Relieve the Golf Fund of paying a portion of the Parks Recreation Director's
salary.
Budget Workshop
Seotember 27.2011— Pape 2
4. Maintenance Building Cost
Staff Recommendation: Charge the Parks Department for 50% of the costs of the Maintenance Facility.
5. 2003 GO Bonds
Staff Recommendation: Transfer monies from the 301 Fund to pay off the 2003 Bond debt.
6. Indirect Cost Allocation
Staff Recommendation: No recommendation at this time.
Several actions are currently being taken to reduce costs and increase revenue including increased marketing
opportunities and outreach, and reducing expenditures through reorganization, extra labor and shared costs.
Staff reviewed a draft 20 -Year Master Plan for Capital Improvements for the Golf Course.
Request for Information
As a result of this Work Session, the Council requested to see a draft of Attachment A reflecting the changes as
outlined in draft Attachment G with zero growth.
Hand -Outs Distributed Prior to Meetim:
Meeting Agenda
Foster Golf Links Power Presentation
Foster Golf Links CIP 20 Year Master Plan
Attachment G Golf Enterprise Funds Three Scenarios based on Round Increase per Year
General Operations 2003 Bonds, distributed by Peggy McCarthy, Acting Finance Director
Debt Service Facts, distributed by Peggy McCarthy, Acting Finance Director
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Summary by KAM