Fort Walton Beach Council agenda — 06-21-05 — reading text

at $ 56, 000 ( 160 carts x $ 350/ battery). Tee time management maximizes fleet use. If the cart fleet were reduced, a seasonal lease for carts may be used to accommodate additional play during peak months. Recommendation Maintain golf cart lease arrangement. U:\ Finance\ Budgel 05-06\ Miscellaneous\Golf Advisory Review. xls 6131200510: 52 AM 2a 14  NEW COUNTY MEMBERSHIPS Policy Decision Should additional new County memberships be permitted? Backaround In March 2004, Council approved opening membership for 30- day period to County residents. A maximum of 200 new memberships were permitted. There are currently 68 single and 18 dependent new County memberships. The enrollment period yielded a total of 74 new memberships and 12 additional memberships have been approved by the City Manager. Discussion Based on the first seven months of play, it is estimated the 86 new County members will generate $ 96, 166 compared to $ 109, 963 as non- members. New County members have walked 36% of the time. Since the rate study was predicated on 200 new County members, their full impact has not yet been realized and comparison of actuals to the rate plan projection is difficult. Policy Impact Effective June 1st, the new County membership fee is $ 745 ( and an additional $ 410 for a dependent). The 18- hole member green fee is $ 5. 00 compared to $ 23. 50 for non- members. The 18- hole member cart fee is $ 11. 50 compared to $ 13. 50 for non- members. Recommendation Allow an additional 114 new County memberships up to the 200 limit set by Council. U:\ FinanceIBudget 05-06\Miscellaneous\ Golf Advisory Review. xls 6131200510: 52 AM 2b 15  EQUIPMENT/ CAPITAL IMPROVEMENT SURCHARGE Policv Decision Should a surcharge be added to each round of golf to fund equipment and capital improvement needs? Backaround In order to minimize rate increases and still achieve financial stability, the expenditure levels projected in the multi- year rate plan reflected delayed equipment replacements and minimal capital improvements. Equipment replacements are needed to maintain course conditions and bulkhead, seawall, and bridge repairs have been necessitated by Hurricane Ivan and recent heavy rains. Revenues are not projected to cover these expenses, which were not anticipated at the time of the rate study. Equipment and capital needs in the amount of $750, 672 were identified in the FY 2005- 06 budget process. Only $ 128, 240 of identified needs were funded due to limited funds, including 2 aerifiers, a turf tractor, a rough mower, 275' of bulkhead, and a 10' x20' bridge. Discussion All member and non- member rounds of golf with the exception of comp rounds and league rounds would be subject to the surcharge. Funds generated from the surcharge would be maintained in a separate account earmarked for equipment and capital improvements. Eligible expenses include maintenance equipment, bulkhead/ seawall/ bridge in repair, cart paths, storage buildings, and irrigation. Expenses would be made based on available funds the account. The surcharge would be $ 2. 50, $ 2. 75, or $ 3. 00 for 18- hole rounds and $ 1. 50 for 9- hole and twilight rounds. Based on year-to- date rounds through April, FY 2004- 05 rounds are annualized as follows: 18- hole: 63, 535 9- hole: 4, 385 Twilight: 20, 100 Comp/ League: 6, 505 Based on FY 2004- 05 annualized rounds, surcharge revenues are estimated as follows: 2. 50: $ 195, 565 $ 2. 75: $ 211, 449 $ 3. 00: $ 227, 333 Policv Impact FY 2005- 06 unfunded needs of $ 622,432 could be completed over the next three years with a surcharge projection does not account for additional needs that may be identified in the future): FY 2005- 06 FY 2006- 07 FY 2007- 08 38, 000 Oaks 3 Bulkhead $ 65, 000 Pines 6 Bulkhead $ 150, 000 Storage Bldg 25, 000 Oaks 3 Bulkhead $ 32, 000 Pines 17 Bulkhead $ 40, 000 Wash Station 40, 000 Chemical Bldg $ 24, 239 Greens Mowers $ 30. 000 Cart Paths 16, 480 Sweeper $ 76. 224 Fairway Mowers ( 3) $ 220, 000 TOTAL 10, 834 Trap Rake $ 197, 463 TOTAL 50,416 Slope Mowers ( 2) 24.239 Greens Mower 204, 969 TOTAL added if rounds Equipment replacement and capital projects may occur sooner or additional improvements continue to increase and sufficient revenue is generated in the surcharge account. Recommendation rounds Council approve a $ 3. 00 surcharge on 18- hole rounds and a $ 1. 50 surcharge on 9- hole and twilight U:\FinancelBudget MiOS- scellaneousl QG6\ olf Advisory Review. xls 61312005 12: 54 PM 2c 16