pages: CityCouncil/2012-07-24.pdf, 2
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CityCouncil | 2012-07-24 | 2 | Manager provided handouts and reviewed the proforma. Mayor Gilmore inquired whether the Golf fund has insufficient funds and would need transfers from the General Fund. The Assistant City Manager reviewed the forecast and two projected scenarios; responded the General Fund would advance funds, which the Golf Fund would pay back. The City Manager clarified the most the General Fund would lend at one time would be $440,000, which would be paid back; stated one scenario is based on Greenway Golf's projections and the other is based on the Contract; both peak at $440,000 borrowed at year four. Mayor Gilmore stated that she has a problem with the General Fund loaning money to Golf because the City has been trying to move things out of the General Fund to relieve pressure; that she has a hard time prioritizing Golf over other needs; the City does not have money in the General Fund to pay for equipment needs for certain departments, like Public Works. The City Manager stated the $440,000 would not take away the current money available in the General Fund; the proposal is to advance the money from the General Fund reserve or the Recreation and Park [Athletic Trust Fund] reserve; ideally, staff recommends the money come from the General Fund reserve, which is 4% over the 20% reserve target; the Recreation and Park Fund reserve would be left with almost nothing; another option would be a bank loan; however, interest would be charged. The Assistant City Manager stated the City's budget is over $70 million; the amount [$440,000] is relatively small compared to the overall General Fund and would come out of the reserve, which would not affect departmental operations; Greenway Golf is confident in its numbers; the drop occurs in the first three years after which the City would be paid back and make money. Councilmember Tam stated that she is more concerned after the explanation; the Council struggled to cut $5 million in the last two budgets; $440,000 could be used, for example, to pay for fire department vehicles instead; tradeoffs should be considered. Councilmember Johnson stated she agrees with the concern; inquired about the Golf Fund balance. The Assistant City Manager responded the number bounces up and down and changes based on the season and rain; noted the City has to pay expenses associated with the Lease and needs to figure out the way to pay for said expenses. Councilmember Johnson stated the Golf Reserve Fund, but nothing more, should be used; the City should only commit to whatever is in the Golf Fund. Regular Meeting Alameda City Council 2 July 24, 2012 | CityCouncil/2012-07-24.pdf |