SR 05:255 - Laserfiche WebLink

ATTACHMENT E City of Pleasanton GOLF ENTERPRISE FINANCIAL POLICY (Adopted by Resolution No. 05-~ The City of Pleasanton recognizes the importance of sound financial management of its golf enterprise. Its long-term goals include the operation of the golf course on an enterprise basis, with the maintenance of adequate reserves, and with financial provisions for funding future replacement/renovations as needed to maintain the quality of the course. Recognizing that in its startup years, the Golf Enterprise will likely not be financially able to function without some form of subsidy to ensure debt service payments, the following interim goals and long-term policies are established. SCOPE These interim goals and long-term policies apply to the Golf Enterprise Funds. INTERIM GOALS The following interim goals apply during the initial startup years of the golf course operation, during which it is projected that, despite the establishment of competitive golf fees, total rounds of golf will be insufficient to cover debt service. This interim period is initially projected to span about 12 to 14 years. The City shall strive to maintain a Contingency Reserve of at least 10% of annual revenues. The City shall maintain adequate Cash Flow Reserves to ensure timely payment of operating expenditures and debt service. o Recognizing the seasonal demand of golf, the City shall set aside adequate cash flow reserve funds to pay fixed operating expenditures including staffing and maintenance of the course, regardless of the timing of revenue receipts. o The City shall strive to prefund any projected debt service payments not covered by net operating income. The City shall review golf fees at least bi-annually, and allow flexibility for management to temporarily lower fees or provide promotions to react to current market conditions.