Fort Walton Beach Council agenda — 03-28-06 Workshop — reading text

between maintaining current play worked together to develop several rate scenarios that and capital needs and rebuilding the net assets of the levels while providing funding for anticipated equipment Golf Enterprise Fund. Discussion Committee for consideration on February 7, 2006 Staff presented twenty scenarios to the Golf Club Advisory Twelve of the scenarios eliminated memberships. based on suggestions received from Committee members. income and net income at the end of the five year period. The scenarios resulted in varying levels of annual react to scenario and consequently how paid rounds and As it is difficult to predict how players will any will be affected, all scenarios were predicated on the following assumptions which must be revenues considered when evaluating the scenarios: Green Fees Effective January 1 of each year 90, 000 annual paid rounds 5% annual increase check rounds Exclude league, tournament, complimentary, second, and rain Leaaues and Tournaments 5% annual increase Emplovee Complimentarv 5 per round fee 5% annual increase Cart Fees Based on 70% of paid rounds 5% annual increase Drivina Ranae 5% annual increase per 30 ball drop Lease Proceeds and Mr. T Based on multi- year lease agreements with Edwin Watts 3% annual increase Other Income Held constant due to unpredictability Includes returned checks, GHIN, earned interest Expenses Personal Services projected to increase 5% annually 7% annually Operating Expenses projected to increase Grounds Maintenance projected to increase 5% annually vehicle, and equipment replacement schedules Capital Outlay projected based on computer, based on 5- year CIP plan and other known improvements Capital Improvement Projects projected future debt Debt Service projected based on current and anticipated new rate plan. Several on February 27, 2006 to finalize a Staff met with the Golf Club Advisory Committee annual income consideration, resulting in varying levels of scenarios were plugged into staffs spreadsheet for scenario the Committee developed its own and net income at the end of the five year period. Ultimately, member and fees increased for City residents and decreased for County residents; whereby membership fees decreased, non- member green fees did not change; member cart junior green fees increased and non- not change; and pull cart fees increased. member cart fees increased, and rider cart fees did Committee Administrator Current 350 $ 350 $ 230, $ 420 ( resident, property owner) City Resident - Member 150 $ 110,$ 165 150 $ City Resident - First Dependent 50 $ 110,$ 165 50 $ City Resident - Subsequent Dependents 350 $ 655, $ 745 ( grandfathered, new) 400 $ County Resident - Member 150 $ 255,$ 410 150 $ County Resident - First Dependent 50 $ 255,$ 410 50 $ County Resident - Subsequent Dependents 2 of 3  15. 00 15. 00 5. 00 18- Hole Green Fee - Member 1 0. 00 1 0. 00 5. 00 9- Hole Green Fee - Member 12. 00 12. 00 4. 00 Twilight Green Fee - Member 23. 50 23. 50 25. 00 18- Hole Green Fee - Non- Member 16. 50 18. 00 16. 50 9- Hole Green Fee - Non- Member 15. 00 20. 00 15. 00 Twilight Green Fee - Non- Member 13. 00 13. 00 10. 00 18- Hole Junior 9. 00 9. 00 6. 50 9- Hole Junior 6. 00 11. 50 11. 50 18- Hole Cart Fee - Member 4. 00 7. 50 7. 50 9- Hole Cart Fee - Member 5. 00 7. 50 7. 50 Twilight Cart Fee - Member 17. 00 15. 00 13. 50 18- Hole Cart Fee - Non- Member 10. 00 1 0. 00 9. 50 9- Hole Cart Fee - Non- Member 12. 00 12. 00 9. 50 Twilight Cart Fee - Non- Member 11. 50 17. 00 15. 00 18- Hole Rider Only 10. 00 10. 00 7. 50 9- Hole Rider Only 5. 00 5. 00 4. 00 Pull Cart the The Committee decided against a $ 5 fee for employee complimentary rounds and against increasing driving range fee 5% annually. net income of $ 727, 310 at the Plugging the Committee' s numbers into staff's spreadsheet yielded anticipated of $ 100, 000 was added in the first end of five years. When an annual contribution from the General Fund five years. three years, net income increased to $ 1, 027, 310 after Conclusion The two rate structures approved by the Golf Club Advisory Committee have been modified to provide the most accurate projection possible to City Council. 1 to June 1. 1. The effective date of the new rates has been changed from January and the membership fee adjustment has been modified. 2. Dependents have been broken out by category was not available at the February 27 Information on the number of primary versus subsequent dependents line takes into account the revenue lost from members who meeting. The membership fee adjustment to time constraints, this number was not modified as renewed prior to the rate increase effective date. Due Committee scenarios were entered in the spreadsheet and evaluated. The beginning fund balance has been corrected from <$ 260, 089> to <$ 271, 938> to reflect final 2005 audit 3. as the unrestricted net assets of <$ 686,427> reduced by figures. The beginning balance is calculated General Fund of $ 100, 000 and the from the total net assets of $ 141, 679 and forgiveness of advances of forgiveness of the advances). Sanitation Fund of $ 172, 810 ( pending City Council approval to 500 at the end of the five year period, attributable The net effect of these changes is a reduction of $ 253, modifying the effective date by six months. A scenario prepared by the Golf Club Administrator has also been provided. their monthly Workshop Meeting on March 28th at Staff will present these scenarios to the City Council during are encouraged to attend. 5: 30 p. m. Golf Club Advisory Committee members 9664 x101 or If you should have any questions on these scenarios, please contact Jim Frazier at 833- Charlotte Dunworth at 833- 9521. Thank you. study\memo to advisory committee. doc u:\