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<br /> <br />Item Description <br />Approve Pinewood Golf Course Budget and Acknowledge <br />Need for Short Term and Long Range Improvements to <br />Pinewood Clubhouse <br /> <br />Item Number <br />7.3.B <br /> <br />Prepared by <br />Bill Maertz, Parks and Recreation <br />Director <br />Reviewed by <br />Lori Johnson, City Administrator <br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration March 20, 2006 <br /> <br />Introduction <br />Pinewood Golf Course Budget <br /> <br />Discussion <br />Attached please find a proposed operating budget for Pinewood Golf Course. This budget includes the <br />lease of new maintenance equipment this is a four-year lease to buy program with ownership in the 5th <br />year. This budget is a conservative estimate based on 16,000 rounds in the first year. Projections show a <br />$10,355 loss in 2006 with a net operating profit of $43,210 over the next five years. <br /> <br />Several factors have changed this budget since the previous Council meeting. Property taxes of <br />approximately $4,500 per year will need to be paid on the property until the lease period of the purchase <br />is over. Another change is that the entire salary of the superintendent is included in the Pinewood budget. <br />Staff has determined that the superintendents frequently work up to 60 hours per week during the golf <br />season, thus staff recommends making the superintendent an exempt position with limited duties during <br />the off season in January and February. <br /> <br />Also attached are memos from the building inspector and fire inspector. The issues raised by these <br />inspectors will need to be addressed by a long-range plan for clubhouse improvements. Title transfer <br />requires a septic system inspection. <br /> <br />Council is advised that weather plays a pivotal role in revenue, thus making budget projections difficult. <br /> <br />Financial Impact <br />The lease of new equipment is absorbed by the operating budget. Minor building repairs to meet <br />immediate needs, are estimated at $15,000. <br />Operating losses for the first three years will total $16,641. <br /> <br />Attachments <br />. Memos from Fire Inspector and Building Inspector <br />. Operating Budget <br /> <br />S:\Council\ 71 B Pinewood budget memo revised for 2-20-06.doc <br />