Generally has a steady balance
For years, the Community Center Fund has languished because of losses incurred in golf. The golf course financial results had performed so badly over the years that it’s earnings plus its sales tax subsidy could not support needed irrigation improvements; improvements in mobility accessibility; an upgrade to the tennis courts; and an upgrade, perhaps revitalization, of the building itself. Indeed, it took the issuance of a bond last fall to make a dent in getting some of these improvements done.
Balance has grown rapidly this year
The fund balance grew from $2.3 million at the end of last August to $4 million, at the end of September. The latest report which is as of February has the balance at $5.4 million. “But how is this even possible?’ asks councilmember Tim Bohen in an email to LOVE, “The Community Center and golf course would need to be quite profitable as a standalone business with no sales tax subsidy to produce this result.”
According to Bohen, once the $25million in parks and recreation bonds were issued, the Community Center Fund began to grow. Councilmember Tim Bowen has been following this. It seems to be an anomaly.
Staff "stonewalls" Council
Balance has grown rapidly this year
The fund balance grew from $2.3 million at the end of last August to $4 million, at the end of September. The latest report which is as of February has the balance at $5.4 million. “But how is this even possible?’ asks councilmember Tim Bohen in an email to LOVE, “The Community Center and golf course would need to be quite profitable as a standalone business with no sales tax subsidy to produce this result.”
According to Bohen, once the $25million in parks and recreation bonds were issued, the Community Center Fund began to grow. Councilmember Tim Bowen has been following this. It seems to be an anomaly.
Staff "stonewalls" Council
Bohen has tried to get an explanation from town staff on why this is the case. Indeed, as you will read in Mike Zinkin’s “Watchdog Report” tomorrow, golf rounds have increased but not among nonmembers. Non member rounds have decreased. It is the nonmember rounds that actually generate additional revenue.
So where is all this good fortune coming from?
So where is all this good fortune coming from?
Bohen doesn’t know and, according to him, town staff has not been forthcoming with the answer. What he’s does know is that the town has failed to transfer to the General Fund $120,000 that is due each year to repay (without interest) the initial funding of the Community Center Fund. He also knows that payments for some of the debt service [and eventual repayment] of the parks and recreation bond will be due from the Community Center Fund at a future date.
We are not sure... but we think its all in the "accounting" for transfers out of the fund
We are not sure... but we think its all in the "accounting" for transfers out of the fund
We have had not verified what we been provided by councilmember Bohen. What we do know is that, as of February this year, the Community Center Fund was budgeted to have a deficit of $391,000 for the entire year. As of February, it has as a surplus of $2.2 million. That is a swing of $1.8 million. Most of this are funds that were planned to have been transferred out of the Community Center Fund which have not yet been transferred. So, maybe its all just accounting.
It is no wonder that councilmember Bohen ask questions about this, though. The accounting for this fund is indeed confusing.
It is no wonder that councilmember Bohen ask questions about this, though. The accounting for this fund is indeed confusing.
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The Community Center Fund is...
The Community Center Fund is one of the accounting buckets the town maintains. Previously, we’ve written about the General Fund, That’s the fund that is use to run the town. That fund includes funding for all Parks and Recreation programs and facilities except the Community Center. The Community Center is financed using its own fund. That is funded by a half percent sales tax. The fund and the sales tax were established when the town bought the golf courses in the clubhouse, which is now called the “Community Center” from HSL properties in 2015.
