City Council Minutes 2010 02 02 - Laserfiche WebLink

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City Council Meeting Minutes February 2, 2010 Page 7 of 8 Conservation Trust Land Acquisition Fund or a combination of the funds. Staff will determine whether borrowing too much from the Wastewater Utility fund will draw down the reserves needed for other capital funds or to maintain an adequate reserve in any of the funds that may make loans to the golf course. Mayor Pro Tem Marsella stated her understanding is the City only has three more payments on the golf course bonds and asked if that would be extended to 2024. Finance Director Watson responded yes and explained the $180,000 the City will receive on an annual basis from Western Golf Properties will pay back the Water and Wastewater Utility Fund. There are currently three loans from the Water and Wastewater Utility Fund and it will take that long to pay back those loans. City Manager Fleming stated the debt service for the golf course is $260,000 a year. The golf course is not ~Ienerating sufficient revenue to pay for the operating services and to payoff the debt service. Western Golf Properties is currently being paid $90,000 a year for operating the golf course. The City gets a portion of any revenue collected. Under the current proposal, Western Golf Properties would pay the City $180,000 per year for the privilege of operating the golf course. The revenue would be used to make a portion of the debt service for the next three years and then pay back the loans to the Water and Wastewater Utility Fund. A previous loan of $700,000 to the golf course in 2008 included the pond reconstruction and the parking lot resurfacing. Additionally there is the funding to cover the operating cost for 2009. He stressed the City is trying to make the best of a very difficult situation. Parks and Recreation Director Stevens explained the current agreement called for a one year and another two-year renewal. The problem is there are other capital improvements issues that will have to be addressed in the next few years. The draft of the proposed agmement would put the onerous on Western Golf Properties to make the capital improvements. He stressed it is a partnership, where the City can choose to participate in those improvements or not. There are safeguards in the agreement to protect the City. Mayor Sisk voiced his concern the City is relying on Western Golf Properties when they haven't performed well. He asked why the City is going forward with the present agreement. He voiced his surprise the Finance Committee was not made aware of the situation. He felt the City is being pushed against the wall. Councilor Sackett stated the bonds would work under any scenario. He did not feel authorizing the bonds would injure the City. Councilor Dalton stated there has not been any case made on what impact this would have on the City's budgl3t.