10/21/2003 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 10/21/2003 was that it would pay its own way. The total amount owed is a little less than $6.7 million. Mr. Bouman said he thinks it is time to sell the golf course as we owe more than $6 million on a course that is worth $2 million. Mr. Limpert said the amount owed on it does not mean it is not capable of paying that off in a better year and as it matures. He does not want to sell an asset he has invested $6 million in that has a very strong potential to recover and pay for itself. Citizens would be unhappy about a $4 million loss. Councilman Miller requested that the Finance Director make quarterly reports on Springvale to City Council. In that way, Council will be made aware of shortfalls as the year progresses. Councilman Gareau said it is a frustrating situation. As Mrs. Copfer pointed out, we have to pay the debt and we have to put money into the golf course to keep it afloat. In hindsight, perhaps the renovations should could have been better planned. But we did it. We are in a spot where, if we don't pay for it, there will be all kinds of legal consequences. If you lay off people, the facility will stop running. Increasing the rates will only keep customers away. He honestly doesn't know how to solve this problem right now. Councilwoman Kasler said she was going to comment on this issue when voting on the transfer ordinance, but it seems more appropriate now. She too disagrees with the transfer of the $90,000 from the General Fund to Springvale. She is extremely aware of the legal obligation to balance the budget. But what is not being addressed is that there are more ways than one to balance the budget. It just seems to that it doesn't always have to be on the backs of the taxpayers-and in this case it is more than $150,000. She is thinking about the impact that has on the potential detriment to the wages of employees and the resulting effect of possibly diminished services. The impact that has on the General Fund is too great to her not to look back again and find other ways to balance the budget to cut expenses and to address the Springvale budget in another manner. When she sees that it is insured that everyone utilizing Springvale pays full price, when it is established that everything there is working properly, then perhaps we need to look at another way to handle this. Urnil that happens, there has got to be another way to balance the budget besides on the backs of taxpayers and operating funds in this city. She is voting no on the transfer ordinance despite that obligation to balance the funds, not because she won't address balancing it, because she thinks somebody better look at another way to do it. Councilman McKay commented that the recreation complex has never paid for itself and has been subsidized for many years. No one has complained about that, so why is Springvale being criticized. Councilman Miller said there is no strategic plan as to when the golf course should or even must start breaking even and not be the burden on the taxpayers that it is. He would suggest that the Recreation Commission and Recreation Committee of Council, lacking a strategic plan from the administration, pull in those reins and look at just that. Determine at what point this golf course must break even or make money. At which point, further decisions should be made. Or, if in fact, what is absorbable by the city. If it's recreation 14