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HomeMy WebLinkAbout2006 03-06 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION MARCH 6, 2006 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Work Session with the Financial Commission at City Hall and was called to order by Mayor Kragness 6:34 p.m. ROLL CALL Mayor Kragness, and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present: City Manager Michael McCauley, Assistant City Manager /Director of Operations Curt Boganey, CARS Director Jim Glasoe, and Director of Fiscal and Support Services Daniel Jordet. Financial Commission Members present were Commissioners Robert Anderson, Susan Shogren Smith, and Mark Nemec. Commission Chair Donn Escher and Commissioner Robert Paulson were absent and excused. DISCUSSION OF GOLF COURSE City Manager Michael McCauley presented a PowerPoint presentation, starting with the introduction that explained that the golf course that was constructed in the late 1980's was funded by a $1.1 million loan and set up as an enterprise. He stated the golf course was set up as an enterprise in order to re -pay the construction loan and generate its own operating funds and capital. He explained that the golf course is the only recreation amenity that is an enterprise. He continued the presentation that included the following topics: • Performance • Park and Recreation Commission Review • Centerbrook Golf Course - Days Lost to Weather • Net Operating Revenues Area Par 3 Course • Centerbrook Golf Course — League Rounds Cancelled CARS Director Jim Glasoe discussed the financial impact of rounds canceled due to weather. He stated league rounds are the bread and butter of the operation and are detrimental if canceled. Councilmember Lasman asked if the canceled rounds are made up. Mr. Glasoe explained that some rounds are still lost, however Staff has been trying to create a formula or incentives to recapture the revenue from those rounds. Staff, Councilmembers, and the Financial Commission discussed financial effects of weather. 3/6/06 -1- • Conditions of site • Parcel Map • Centerbrook Golf Course Site Map Staff, Councilmembers, and the Financial Commission discussed storm water and water retention including the 100 and 500 year flood plan on the golf course. Mr. McCauley stated this is not land that is usable for anything other than open space, flood water retention, or a golf course. Uncaptured Benefits Mr. McCauley stated the regional storm water ponding site is located on this facility and there was no payment to the course when the course was flooded by storm water detention nor was there payment when operating days were lost during storm water pond construction, estimated value of $49,000. He explained that the access to the water tower and maintenance of grounds are maintained under the golf course enterprise fund. • Options • Option 1. Status Quo • Option 2 Discontinue • Option 3 Privatization • Option 4 Treat as Principal Only • Option 5 Establish Targets Staff, Councilmembers, and the Financial Commission discussed options for the golf course. Recommendations Mr. McCauley requested direction from the City Council and Financial Commission on the future of the Golf Course. Staff, Councilmembers, and the Financial Commission discussed the effects on property taxes both in the past and in the future. Councilmember Niesen inquired about the listed expenditures for this time of year. Mr. Glasoe explained that the current expenditures are primarily staffing and utilities. Mayor Kragness stated she would like to see the golf course remain and added that many local golf courses are experiencing the same problems. Mr. Glasoe explained that the golf course is profitable enough that it is not a burden on the taxpayers. Councilmember O'Connor stated the pressure should remain on the golf course to pay the loan and decrease expenditures. Director of Fiscal and Support Services Daniel Jordet distributed a financial statement of the golf course and discussed funding depreciation that is included in the list of expenditures. 3/6/06 -2- Councilmember Lasman stated commercial use is not a viable use because of the soil. She stated park land would not contribute revenue and would amount to considerable maintenance costs. She stated if the golf course is contributing enough to cover operations and could possibly contribute to the capital improvement fund, the City should retain the golf course. She stated the golf course is an amenity to the City because it accommodates youth, seniors, and families. Mr. McCauley stated he would prepare a golf course specific capital plan for the loan replacement ideas, and have the Financial and Parks and Recreation Commission review proposals for a subsequent work session. ADJOURNMENT Councilmember Lasman moved and Councilmember Carmody seconded adjournment of the City Council meeting at 8:25 p.m. Motion passed unanimously. City Clerk May 3/6/06 -3-