Finance Committee Agenda and Packet 2016 10 17

Home Browse Search

City Council Finance Committee Meeting Minutes 09/19/16 Page 4 of 7 continue to loan money it cannot afford and for which it needs to continue funding its ongoing growth and operations. Member Stolzmann concluded by stating that it seems odd that this loan structure is in place since either the General Fund will end up paying for the Wastewater Fund debt or for funding the future capital and operational needs of the Golf Course. City Manager Fleming stated that so much of the Golf Course infrastructure is new, that he would doubt there will be much in capital outlay needed over the next 3-5 years. City Manager Fleming stated that it may be prudent to see how this year ends for the Golf Course before deciding what to do, noting they might break even, including the annual Wastewater loan payment. Finance Committee Member Maloney stated that the financial statements for the Golf Course through August reveal a 40% reduction in revenue and expenses for the year. Member Maloney stated that he would like to see a 5-10 year capital expense plan for the Golf Course which could be used to set up reserves for future needs. Member Maloney stated he would like to see all the Enterprise Funds successful and self-sufficient. City Manager Fleming stated that he would request a listing from the Golf Course of all capital and operating expenses anticipated in the next 5-10 years. Member Stolzmann stated she agreed with Finance Committee Member Maloney noting that the Wastewater Fund has ended up paying a higher interest rate on its debt than it is receiving on the loan repayment from the Golf Course (or General Fund). Director Watson confirmed that was true noting that restructuring the loan repayment from the Golf Course to the General Fund would be less restrictive. Finance Director Watson sought clarification that the Finance Committee desires to make the Wastewater Fund whole from the General Fund and then establish a loan for repayment over time from the Golf Course. Director Watson added that satisfying the Wastewater Fund loan could be done in the current year while still maintaining the necessary reserves. Member Stolzmann stated that this would be her desire, but that not all City Council Members may agree and may not want General Fund reserves used for the repayment. Ms. Stolzmann stated that the Finance Committee would draft a summary of the issue to present to the full City Council for discussion. Finance Committee Member Maloney stated that there are two issues, one being the timeline for discussion of the Golf Course loan repayment and the review of the Golf Course 2017-2018 budget line items; and two, receiving a long term business plan for the Golf Course. Member Maloney stated that it is difficult to make a recommendation at this point without knowing what has been requested in the budget and what their long term needs may be. Member Maloney restated 5