Title
Consider an ordinance adopting Amendment No. 2 to the FY 2016-2017 Operating Budget. (Second Reading)
Body
This ordinance is to amend the FY 2016-17 Operating Budget for the Forest Creek Golf Club (FCGC) operating and capital costs and to allocate funding. At the time of the original budget adoption, the City was in the middle of evaluating needs for the course and selecting a new management company. Therefore, there was not yet adequate information to adopt a budget for FCGC.
KemperSports, the City’s selected management company, and staff have now done a more thorough evaluation of the course conditions and current year needs. As a result of the change in the management contract structure, the operations are now presented with gross revenues and expenditures instead as a small net number as in prior years. Kemper took over the course in January 2017, so these amounts represent 9 months of operations, start-up costs and revenues for FCGC.
The 9-month budget for the course is proposed at $1,790,000 for start-up and operating costs. The operating revenues and existing fund will cover $1,530,000 of operating costs with $260,000 transferred from the General Self Finance Construction Fund to cover capital projects and initial start-up costs.