HomeMy WebLinkAboutCity Council Committees - Parks and Human Services - 05/19/1992 Brenda cober
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Parks Committee Minutes
May 19, 1992
Councilmembers Present: Jon Johnson, Chair; Jim Bennett; Christi Houser and
Leona Orr.
Staff Present: Ed Chow, Barney Wilson, Tony McCarthy, Tom Brubaker,
Alana McIalwain, Stephanie Strozyk, Lee Anderson, Robyn
Bartelt, Cheryl Fraser, May Miller, Patrice Thorell ,
Carol Weston, and Pam Rumer.
Others Present: Doug Schwab and Bill Doolittle.
ACCEPTANCE OF KENT CHAMBER OF COMMERCE FOUNDATION DONATION
Patrice Thorell requested that the Parks Committee accept a $5,000 donation from
the Kent Chamber of Commerce Foundation to Canterbury Faire, and place it on the
June 2 City Council agenda for full Council acceptance.
Bennett moved to accept the $5,000 donation and to place it on, the June 2 City
Council agenda for full Council consideration. Johnson seconded the motion.
The motion passed with a 2-0 vote, as Councilmember Houser was not yet present.
GOLF COMPLEX MONTHLY FINANCIAL REPORT
McCarthy informed the committee that he prepared the financial report as a result
of recommendations made by the Golf Advisory Board.
The March financial statement showed that expenses are exceeding revenues; the
graphic analysis showed that through March, the golf complex; collected 113.5% of
its projected revenue, but overspent on the expenditure side by $411,000.
According to McCarthy's projections, revenues will increase at 4% for 1993-97,
and expenses will increase at a rate of 5%.
McCarthy explained that his trend data is based upon the number of years the golf
course has been open, and added that this was adjusted significantly when the
City added the 18 hole course. Wilson pointed out that the City has had the 9
hole course for ten years.
McCarthy concluded that the unreserved fund balance, even after the $506,954
transfer from the 1992 capital improvement fund, is a negative $572,863, and is
not projected to be positive until 1994. It was his suggestion that capital
expenditures should be deferred unless additional revenue can be generated from
play or rate increases, operating expenses can be cut, or additional
contributions can be made from other funds.
McCarthy reported that in April , the revenue trend softened and the expenditure
trend went up. He said that if this trend continues, the golf course will
overspend its budget by 25.8% in 1992, which will result in a negative cash flow
balance of $12,000.
McCarthy recommended that the City shouldn't make purchases from the golf complex
equipment list unless something changes in the revenue or expenditure equation,
or unless money is taken from the CIP for such purchases.
Bennett commented that the demand for golf has increased dramatically in the late
80's and early 90's. He felt that McCarthy's ten year trend is a little
misleading.
In response to Bennett's comment regarding merchandise, McCarthy said that trend
data shows the merchandise budget will be overspent in 1992 and that it hasn't
been positive since the beginning.
Wilson commented that he had an enterprise fund at the Kent Commons which was
only 70% self-supporting, and that he has never seen income so heavily
concentrated upon as it is with the golf complex. He said that other cities
would be happy to have a business like Riverbend.
Wilson said he hoped everyone would put the golf course to rest so the staff can
get back to running it. He distributed a handout showing golf complex income
comparisons for 1992.
Bartelt was concerned that the 1991 actual amounts are predicting less in green
fees at the 9 hole, less in driving range fees, and not much of an increase in
18 hole green fees for 1992, yet the golf complex has brought in more revenue the
first four months in 1992 percentage-wise.
McCarthy commented that he projected the 1992 revenues based upon history. He
said that over the years, the golf complex has always overspent its budget.
Regarding the trend data, Bartelt pointed out that when the April 1992 estimates
and actuals are compared with the April 1991 estimates and actuals, the golf
complex is $110,000 ahead in revenues this year. She said that although the golf
complex is $49,000 ahead in expenditures, there is a big difference as far as the
percentage of revenue over expenses this year versus last year.
Johnson said this will be an ongoing process, and the Golf Advisory Board will
be making recommendations as to how we might improve the facility even more.
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