SR 05:167 - Laserfiche WebLink

In 2006-07, the recommended General Fund transfers from operations to the CIP include $2 million to the Miscellaneous CIP, $2 million to parks projects, and $1 million for street maintenance and improvements. The City started phasing in contributions from General Fund operations to the CIP, in order to meet funding requirements for the General Fund's share (up to $62 million) of projects that were identified in the Development Impact Fee Report prepared in September 1998. At the time it was estimated that it would take at least 20 years to provide this level of funding. In addition to these contributions from General Fund operations, one-time funds have also been transferred to the CIP, to help fund the projects identified plus an expanding list of projects. Since 1997-98 and projected through 2006-07, the General Fund will have contributed $67.5 million to the CIP. In the General Fund, there are two proposed transfers to other Operating Funds in the two-year budget period. Transfer to Increase Golf General Fund Debt/Cash Flow Reserve Due to the delayed opening of the golf course to late this fall, the first year of full debt service will need to be paid largely (if not completely) from a $1.6 million Golf General Fund Reserve already set aside for future uncertainties. The proposed Budget provides for this reserve to be backfilled in a like amount with one-time monies. Besides meeting the need for a cash flow reserve, this action also provides a layer of protection to the rest of the budget and CIP from potential future impacts. Specifically, the Budget uses the existing $1 million in General Fund Capital Reserve funds from last fiscal year and $600,000 in savings resulting from the Midyear 2004- 05 budget update to be transferred in 2005-06 to the Golf General Fund Reserve for debt service/cash flow. This action will provide complete protection through the two- year budget time frame against any debt service impacts not met from golf operating revenues. No matter how well or how poorly the course performs financially, these funds will ensure the debt service can be paid. Certainly the hope would be that as few funds as possible would be drawn from this reserve in the coming two years, so that it can be kept intact as a future layer of protection for the General Fund. This transfer also provides initial cash flow dollars, as needed by most start up companies. While the start up of the golf course has raised many concerns about the General Fund's involvement, it should be pointed out that the City also subsidized the Water Fund initially (through the sale of bonds, cash contributions and subsidized overhead costs such as accounting, legal, etc.) until it became a self-sustaining enterprise over the course of several years. The golf course will very likely have difficulties breaking even in its early years. A lot will depend on the demand, competition from other courses, and decisions that are made regarding rates and services associated with it. Staff will be presenting to the Council a formal golf course budget in the September/October time frame, in advance of its anticipated opening in November 2005. b-21