Agenda Packets - 1997/07/28 - Laserfiche WebLink

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City of Mounds View Staff Report July 23, 1997 Page 2 • other City moneys or general revenues for that purpose. General revenues could include property tax levies. In the event general revenues are insufficient to pay all City requirements of providing general Cityservices, some service levels would have to be reduced. If Golf Course operating costs were reduced it could have an adverse effect on the Golf Course and reduce golf course revenues. This appears to recognize that fact that if the golf course is not adequately maintained, it could adversely affect revenues which could start a dangerous downward trend of reducing costs in an attempt to improve operating results which then further reduces revenues, etc. In conclusion, bond covenants pledge the revenues of the golf course first to debt service but appeal to also require the City to adequately maintain the golf course. While the bonds are not general obligation bonds, covenants also appear to require the City to use general fund resources, including tax levies, to adequately operate the golf course. The proposed agreement does not appear to violate any bond covenants. Estimated personnel costs At the start of the 1996 golf season, the golf course operated with one full-time position (superintendent). During the late summer, the PGA Pro/Clubhouse Manager position was changed to a full-time position with a maximum salary of$20,000 per year. The employees in both positions were in the lower steps (Step 1 to 3). Using the proposed contract, the • superintendent would have had another$43,000 available to use for salaries/incentive pay at the golf course during 1996. The 1997 budget was prepared based upon operating procedures in place during 1995 and early 1996. Based upon the budget and the proposed agreement, $44,000 would be available for salaries/incentive pay at the golf course. 1997 actual results will vary for the budget. While the course was opened early in the spring, July operations have been down substantially due to wet weather, especially on weekends. On the personnel side, the City was able to hire a seasonal part-time employee with training in turf maintenance but at a slightly higher pay scale than for other part-time employees. The number of personnel hours were up over previous years due to the earlier spring opening, and the need for added maintenance due to the high level of course usage. Due to the tight labor market, the ability to find and retain quality part-time employees at our existing pay levels is being restricted. The following is a summary of the salaries for several golf course positions: Maximum 1997 actual Superintendent $42,470 per year $40,346/yr PGA Pro/Clubhouse Manager 20,600 per year 18,540 /yr Assistant Superintendent $13.00/hour Assistant Pro 8.00 /hour • Assistant Clubhouse Manager 8.00 /hour Other personnel 5.00 to 7.50/hour