HomeMy WebLinkAbout07/15/2015 7J �
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
. SUBJECT: Resolution No. 3248 amending Study Session Date: July 8, 2015
Resolution No. 3159 relating to an Interfund COUNCIL MEETING Date: July 15, 2015
Loan to the Gold Mountain Golf Complex Department: Financial Services
Fund from the Equipment Rental Reserve P�eSenter: Cathy Johnson/Mike Riley
(EFF) Fund Phone: (360)473-5296
SUMMARY: On December 21, 2011 the City Council approved Resolution No. 3159 authorizing an
Interfund Loan to the Gold Mountain Golf Course for the purchase of replacement greens equipment.
The final installment of$186,000 was not issued until December 31, 2012, the date of initial
repayment. In 2013 management of the course was transferred to Columbia Hospitality. Terms of
the prior management agreement required the City to purchase inventory on hand at transition. Also,
in order to effect a smooth transition, some equipment owned by the operator was purchased at
market value. These costs, in addition to startup costs due to CHI, amounted to around $200,000.
The costs reduced the cash flow available for loan repayment on the approved schedule. Two
payments amounting to$103,464 were made in 2014. The current balance of the loan is $157,536.
The request is to extend loan repayment for two additional years, to December 31, 2018 to allow for
adequate cash flow to operate the course. An accelerator has been included for earlier payment if
funds are available. Accrued interest has been paid on the outstanding balance through December
31, 2014.
ATTACHMENTS: 1) Resolution No. 3248 2) Loan Repayment Schedule 3) Resolution No. 3159
FISCAL IMPACTS (Include Budgeted Amount): The 2015 budget contains an annual installment
payment. The funds loaned from ERR are from fund balance in excess of that needed for
operations. Interest received by the ERR fund compensates for other interest earnings that would be
received if the loan had not been made.
STUDY SESSION AGENDA: 0 No Presentation ❑ Full Presentation
STUDY SESSION ACTION: ❑x Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION: Move to adopt Resolution No. 3248 amending Resolution No. 3159
relating to an Interfund Loan to the Gold Mountain Golf Complex Fund from the Equipment Rental
Reserve Fund.
COUNCIL ACTION: [�Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/07/15