City Council Minutes 2014 10 14 - Laserfiche WebLink

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City Council Meeting Minutes October 14, 2014 Page 16 of 23 Council member Lipton generally agreed with other Council member's comments and noted the City has made a commitment to the golf course and it appears there will have to be a General Fund subsidy. He voiced his concern over next year because the General Fund subsidy is based on assumptions, which are uncertain. He stated there was not a lot of margin and the probability is the revenues will be short. He felt Council would have to consider the budget process. He stated this is one item of uncertainty, which could hurt the City later. Finance Director Watson clarified the general fund subsidy to the golf course in 2014 is $200,000. However in 2015 the Waste Water Utility Fund will subsidize the golf course operations. Currently the golf course has a debt to the Waste Water Utility Fund, but the General Fund will not subsidize the golf course after 2014. City Manager Fleming noted the loans to the golf course must be paid back with interest. Council member Lipton felt the General Fund will ultimately backstop the golf course. Finance Director Watson explained the General Fund does not have the reserves to backstop the golf course. Council member Keany voiced his concern the opening date for the golf course was overly optimistic and for the revenue assumptions, which were tied to the opening date. He expected staff to make significant changes to the expenses if the golf course does not open in that timeframe. He noted there would be no need to hire staff and purchase equipment if the golf course opens later. He addressed the rack rate, the dynamic prices and a software program in order to sell more rounds. He felt there may be flexibility. He was concerned over the revenues and expected staff to make significant changes to the expenses as dates change. He agreed the golf course cannot borrow from the Wastewater fund indefinitely and eventually it will have to be subsidized by the General Fund. OPEN SPACE & PARKS FUND Council member Stolzmann thanked City Manager Fleming for providing the information. She felt it made sense to have the Open Space Administration, operations, Open Space and Parks Capital funded directly out of the Open Space Tax. She suggested moving the Parks Administration and operations into the General Fund. This covers the cost of the transfer and allows the Fund to grow. Over time it would allow the purchase of the top tier Open Space purchases. She stated it will help the City manage its parks through the General Fund when the tax sunsets. She did not support paying for the golf course out of the Open Space Fund. The Open Space Fund could pay for a ranger and maintenance and the controlled burn. Mayor Muckle voiced his appreciation to City Manager Fleming and staff for the way the budget was presented. He agreed the City is spending a lot of money on Parks and not