Fort Walton Beach Council agenda — 06-17-08 special agenda — reading text

CITY OF FORT WALTON BEACH City Council Special Meeting Agenda —June 17, 2008 —5:30 P.M. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA SPECIAL PRESENTATION 2. Consideration of budget policy issues to guide the development of the Fiscal Year 2008 -09 Operational Budget and Capital Improvements Program for the Golf Club Enterprise Fund. ( A slide presentation will be made at the meeting) ( City Manager) CD 01 - 2008) ( See Backup) PUBLIC HEARING AGENDA —First Reading 3. Consideration of Ordinance ( 1768) of the City of Fort Walton Beach, FL; adding a new Chapter 10. 521 entitled " Stormwater Management Utility" to the Code of Ordinances; making findings of facts and purpose; authorizing a Stormwater Management Program; establishing regulations for contributions of stormwater runoff; authorizing establishment of stormwater utility user fees and collections; authorizing certain property owners to refuse service; authorizing establishment of certain credits for mitigation; providing for penalties; resolving conflicting provisions and severability; and setting an effective date. ( Utilities Director) ( CD 05 -2007) ( See Backup) 4. Consideration of Ordinance ( 1764) of the City of Fort Walton Beach, FL; providing for authority; amending Section 12. 73, entitled " Miscellaneous Provisions" of the City's Land Development Code, by creating Article 12. 743, entitled " Dog Friendly Dining "; by creating, pursuant to section 509.223, Florida Statutes, a local exemption to certain provisions of general law and agency rules relating to public food service establishments in order to permit patrons' dogs at certain designated outdoor portions of such establishments; providing for implementation and enforcement procedures; providing for conflicting provisions; providing for severability and providing an effective date. ( CDS Director) ( S)ee Backup) Municipal Planning Board Recommendation: Approval (7 -0) ( 615108) ADJOURN Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286.0105) The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request Please can City Clerk Helen Spencer at 850 -833 -9509 to make a request. For Hearing Impaired dial the City Hall TDD # 850 -833 -9925 or 1- 800 -955 -8771 ( TDD) or 1- 800 -955 -8770 ( Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  CITY COUNCIL SPECIAL MEETING June 17, 2008_____ SID. Agenda Item Number: 1  CITY COUNCIL SPECIAL MEETING June 17, 2008 Special Meeting Agenda Consideration of budget policy issues to guide the development of the FY 2008 -09 Operational Budget and Capital Improvements Program for the Golf Club Enterprise Fund City Manager) Agenda Item Number: SP- 2  4EVVIN G SOM r 40, Ow 491 J ZOog Jae IL971 * 08 121% " June pblisHe' 6' tame in region at in the cities and ader among lent use of a 00-0 Nllatton Beach to 6e native and efft ort through inn° the Cif of citizens to att ISSIO of services It is the outstanding q L ty illillillillillllllll delivering Golf Fund Meeting TABLE OF CONTENTS Background 3 Economic Indicators 4 Revenues 5 Expenses 7 Policy Decisions 9 Cost Allocation Plan 11 Clubhouse Debt Service 13 Equity in Pooled Cash 15 17 Membership Differential 19 Play Cards 21 Twilight Play Multi -Year Rate Plan 22 Appendices Comprehensive Fee Schedule 24 10 -Year Revenue History 32 10 -Year Rounds History 39 7 -Year Membership History 40 Golf Fund Pro -Forma 41 Rates at Other Courses 42 BusinessWeek Article 56 Paae 1 of 59 1 of 23 Golf Fund Meeting u b Paae 2 of 59 2of23 Golf Fund Meeting BACKGROUND The City of Fort Walton Beach operates two championship 18 -hole golf courses along with driving and putting ranges. The original golf course ( 18 -hole Pines course and 9 -hole Oaks course) opened in 1965. The back 9 holes of the Oaks course were completed in 1993. The putting range was added a couple of years ago. The new clubhouse, Two Trees restaurant, and Edwin Watts pro shop opened in 2004. During FY 2003 -04 City Council adopted a Golf Club Business Operations Plan and formed a Golf Club Advisory Committee to address the long -term financial outlook of Golf Club operations. Key components of the business operations plan were to ensure that the Golf Club was in consistently good playable condition and that the Golf Club generated sufficient revenues to cover operations. Further, a comprehensive golf club fee study was completed and adopted by Council in March 2004 implementing a multi -year rate plan. Prior to this rate plan, fees were adjusted in 2000 and 1995. As a result of the rate study, all green and cart fees were increased.Member green fees increased from $ 3. 50 to $ 4. 75 and nonmember green fees increased from $ 19. 50 to $ 23. 00; cart fees increased from $ 9. 50 to $ 11. 00 for members and from $ 9. 50 to $ 13. 00 for nonmembers. Membership fees, last adjusted ten years ago, were adjusted consistent with inflation over the same time period. Further, in an attempt to increase play levels, the county membership category, once closed to new members, was reopened for a 30 -day period during FY 2003 -04. The new county membership category attracted 74 new memberships out of a possible 200 available. In April 2006 City Council adopted a revised five -year rate plan with rate adjustments effective each June 1 through 2010. Among the rate changes, member green fees were increased from $ 5. 00 to $ 15. 00, a non -member play card was introduced, cart rental became mandatory during certain times, and twilight fees were increased to $ 12. 00 for members and non -members. In addition to the new rates, City Council forgave a $ 100, 000 advance from the General Fund and a $ 172, 000 advance from the Sanitation Fund. City Council also voted to have the General Fund continue to absorb the Golf Fund' s portion of the City' s Cost Allocation Plan for the next three years. In May 2007 City Council canceled the fee increases scheduled to take effect June 1, 2007 per the multi- year rate plan adopted in April 2006. It had been the consensus of City Council at the May Budget Policy Meeting that it was in the best interest of the Golf Club to not increase fees as scheduled. Golf club rates were adjusted in September 2007 effective October 1, 2007 to decrease the County member rates to the City member rates, add a six -month membership, add a member play card, add an unlimited rounds ( excludingcart) non -member play card, add bulk purchase for condo /rental agencies, and add a 9 -hole twilight rate. Per the adopted Comprehensive Fee Schedule, rate increases at the golf club were to take effect June 1, 2008 based on the rate structure adopted in April 2006 along with relative increases for the new categories adopted in September 2007. Rates have not been adjusted, pending the outcome of this Golf Fund Meeting. The unrestricted net assets of the Golf Fund have been negative every fiscal year since FY 2003. The City's auditors have commented in the last three years' audits about the Golf Fund' s cash flow deficits and deficit unrestricted net assets. Three things must work in harmony to achieve successful operation of the Golf Club: paid rounds, fees charged, and expenses incurred. The objectives of this