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STAFF REPORT <br /> PAGE TWO <br /> NOVEMBER 22, 1993 <br /> However, it must be noted that, while the City taxpayers will not be obligated to retire <br /> the debt on the Revenue Bonds, in the unlikely event that the course's revenues (over <br /> a period of time) were not sufficient to pay the debt service, the City would have to re- <br /> evaluate the operations of the course and its revenue/expenditure stream. Such re- <br /> evaluation might result in one or a combination of several courses of action, only one <br /> of which may require a general tax subsidy. Other actions could be restructuring the <br /> course operations, lease or sale options. This discussion is called to your attention <br /> only-to inform—the Council fiat while the Revenue mond proposedis inancially <br /> sound issue, developed from a well-advised and comprehensive revenue/expenditure <br /> analysis, there are, however limited, some risks. <br /> However, every action a City takes, in terms of any development project -- be it <br /> commercial/industrial or an enterprise endeavor such as the golf course, involves a <br /> measure of risk. In this case, the benefits, as determined by the Task Force, far <br /> outweigh any possible risks. <br /> The City's financial consultant Bob Thistle and Bond Counsel Jim O'Meara have <br /> reviewed the market analysis conducted by Effective Golf Course Systems and have <br /> determined that the gross revenue from the course will "be sufficient to pay, when <br /> due, the principal of and interest on the Bonds." Both Bob Thistle and Jim O'Meara <br /> will be present Monday night to explain the details of the Bond issue. <br /> The attached resolution includes several blank areas which cannot be completed until <br /> the Bonds are sold. It is anticipated that the date of sale will be between December 8 <br /> and 13, 1993. Subsequent to the Bond sale, all information will be provided and the <br /> Council will be required to take formal action to approve the interest rates and enter <br /> into the Bond Purchase Agreements. It is anticipated that this action will take place at <br /> either the December 8th or 13th Council meeting. <br />