Fort Walton Beach Council minutes — 08-28-1990 Budget Workshop — reading text

191 MINUTES OF THE COUNCIL BUDGET WORKSHOP MEETING OF THE CITY OF FORT WALTON BEACH. FLORIDA AUGUST 28. 1990 INTRODUCTION A budget workshop meeting of the City Council of Fort I Walton Beach, Florida, was held Tuesday, August 28. on 1990, at 5 : 30 p. m.. in the Council Chambers at City Hall, with the following members present: Mayor William J. Roberts. III Councilmen: J. C. " Buck" Smith Sid Rosenbaum David deVaux Jim Wyatt Tom Maney Cissy Wyninegar Also Present: Chuck Keeler, City Manager; Billy Mikel, Assistant City Manager; Charlie Evans, Finance Director; Helen Spencer, City Clerk; Department Heads; news media 90/ 91 PROPOSED BUDGET The Mayor called the Budget Workshop to order and asked the City Manager to present the reports regarding the golf course fees and construction. Mr. Keeler stated the Assistant City Manager would present the report on fees and and the Golf Course Manager would present the report for the construction of the additional 9 holes. Mr. Mikel stated at the last meeting, Council instructed the City Manager to bring back figures on the rate structure as to where we are presently; fee increase and the effect it would have on producing revenue. He stated he and the Golf Course Manager had checked with other golf courses in the area as to what they charged. level of service provided and based on the Consumers Price Index. the percentages were reflected on the sheet provided. The increase shown would produce $ 279, 029. additional revenue. Mr. Mikel stated the present resident discount fee was 7. 04 and the proposed fee was $ 7. 98 or a 14% increase. Mr. Rosenbaum wanted to know how they arrived at the I arbitrary percentages. Mr. Wyatt stated there were 950 non- resident and resident members with the average member playing 102 rounds a year with the cost per round being approximately $ 2. 56 and if we increased the user fee to $ 2. 00 for residents and non- residents. the cost per rounds works out to be $ 3. 50. This would generate an additional $ 140, 000 over and above the number shown. 192 Budget Workshop 8- 28- 90 90/ 91 BUDGET ( CONT.) Mr. deVaux asked if there would be a substantial number of members dropping out. Mr. Wyatt stated he had spent some time with people from the US Golf and it was their opinion we would not loose a single round. Mr. Rosenbaum stated approach the he would consider would be increasing the non- residents fee. Mr. Wyatt stated he had no problem with that other than if you raise the membership fee $ 20- 25 it might jeopardize losing members where a $ 2. 00 user fee would not. Mr. deVaux stated he looked at the golf course as a recreational facility, a level of service, provided to city residents. If we make it competitive with other golf course than we should make it a country club and get real competitive. Mr. Wyatt stated we are not competitive and we cannot raise taxes enough to cover the budget, and we have to look for alternate ways to raise revenue and what Mr. deVaux was saying is this a level of service to the taxpayer and the catch 22 was we either pay 15- 20% more in taxes or find other sources of revenue. Mr. Maney wanted to know if they had looked at what other cities charged for their course and if we were low. high or medium in comparison. Mr. Mikel stated we are one of a few cities that have a municipal course and we are low. Mr. Maney asked if it had been considered to raise our fees comparable city to Florida what a in that hasgolf a charges and determine course the amount of revenue that would produce. Mr. Mikel stated the report they had submitted accomplished just that. Council could reduce or increase the proposed fee. the report was a starting point for Council. Mrs. Wyninegar inquired as to whether it was common in other cities to have some recreational facilities that produced revenue to subsidized the budget. Mr. Mikel stated in going back to Mr. deVaux' s question, the determination has to be made by Council as to what service you provide that are considered recreational services and what is a revenue producing service. We can only offer to you data to determine this. Mr. Wyatt suggested they keep in mind during their evaluation that we are going to be in a position of plowing new ground, simply because a lot of the expenses we are going to incur we have to find revenue to cover because they have not been mandated before. We have to look at how to cover them and we come to the realization that taxes cannot do it. Mr. Rosenbaum stated he felt the senior membership category was wrong, it was too cheap. Mr. Maney stated