HomeMy WebLinkAboutSpecial 2011-09-27 Item 1C - Policy Issues and Recommendations9/26/2011
Rounds Projected for 2003 Bond
60,000 Rounds with 2% Growth Annually
foster
GOLf :'INKS
Policy Issues
1 Maintenance Building transfer of $650,000
2 Admission Tax
3 Director's Salary
4 Maintenance Building Cost
5 2003 Bond
6 Indirect Cost Allocation
1
foster
5
New Clubhouse
Year 2000 1
2001 1 2002 L 2003 1
2004 1
2005 1
2006 1
2007 1
2 008 1
2009 1
2010 1
2011 1
;Total 66,317
60,3111 57,4901 35,7641
53.0701
54,4491
55,1951
55,446
53,5651
51.9221
49,2021
50,0001
Projected Rounds
60,0001
61,200
62,424
63,6721
64,9461
66245
67,5701
68,9211
Rounds Under Projections
(6,930)1
(6,751)1
(7229)
(8,226)
(11,381)1
(14,323)1
(18,368)1
(18,921)
Average Cost of Round wicartl
241
241
241
24
241
24
241
24
Re (166,320)1
(162,024)1
(173,496)1
(197,436))
(273,142)1
(343,748)
(440
(454,107)1
foster
GOLf :'INKS
Policy Issues
1 Maintenance Building transfer of $650,000
2 Admission Tax
3 Director's Salary
4 Maintenance Building Cost
5 2003 Bond
6 Indirect Cost Allocation
1
foster
5
9/26/2011
1- Maintenance Building -Transfer $650,000
In 2004, the City transferred funds into the Golf Fund
Recommendation
For the City to consider the transfer of funds for half of the cost for
the Parks and Golf Maintenance Facility.
foster
GO L F L I N K S
From 2005 to 2008, the City Council placed a temporary hold on
collecting this tax.
In 2009, the Admission Tax was applied to the Golf Course.
Foster has paid $122,000 in 2009 -10 and will contribute another
$60,000 (est.) in 2011.
Recommendation
For the City to temporarily or permanently relieve the Gott Fund of
this tnx
foster
GOLF
2
9/26/2011
3- Director's Salary
For years, the Golf Fund has paid a portion of the Park Director's
salary. This is the only Special Enterprise Fund that pays a portion
of the Director's salary.
Recommendation
Relieve the Golf Fund of this expense.
foster
G O L F L I V K 5
The maintenance building is equally shared between Parks and
Golf. Since 2002, Foster has paid the entire cost of the
maintenance building.
Recommendation
Have the Parks Department pay 50% of the maintenance
building cost.
_..9
19
9/26/2011
5 -2003 Bond
i
The 2003 Bond relied on a golf round projection of 60,000 rounds
in 2004, with a 2% increase in rounds each year.
Foster was scheduled for 68,921 rounds in 2011.
Foster did increase rounds from 2004 through 2007.
Recommendation
Utilize a 301 Fund transfer to pay off the debt. The Golf Fund
would transfer money back to the 301 Fund once the revenue
stabilizes.
foster
GOLF L NK
Indirect Cost Allocation (ICA)
It is anticipated that the ICA will be less in the future with the
efficiencies found city -wide and in the golf operations. The City
Council will be provided the new information with their ICA annual
review. The Golf Fund will pay annually as much of this as possible.
f
0
9/26/2011
ECONOMY
WEATHER
4=0
foster
C; 0 L F L N K 5
Alternatives
Remodel facility and create a driving range with 9 hole golf course
Close the Golf Course and sell or develop the property
9
1 1 Outside management