Presenter/Contact
Presenter
Robert Camareno, City Manager
Contact Info
(830) 221-4280 - rcamareno@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of a resolution recommended by the New Braunfels Industrial Development Corporation to provide up to $450,000 to the City of New Braunfels for a project to operate and maintain Landa Park Golf Course at Comal Springs.
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BACKGROUND / RATIONALE:
During the 2016-2017 budgeting process, city staff projected an operating deficit in the operation of the Landa Park Golf Course at Comal Springs (LPGC) and presented those findings to City Council. One of the policy directions received from the City Council at the time was to discuss a possible contribution from the New Braunfels Industrial Development Corporation (NBIDC) to fund a gap in the expected operating revenues.
In December 2016, staff presented an overview of Landa Park Golf Course’s financial position during the 2016-2017 fiscal year to the NBIDC Board of Directors. Since that presentation, the City engaged a consultant to analyze the position of the golf course and provide recommendations for its future. The study has since been completed, the results presented to the City Council and NBIDC Board, and immediate changes are being implemented. However, despite any implemented changes, the golf course fund will run a deficit during the 2016-2017 fiscal year. To fulfill these debt service commitments, the City is utilizing fund balance reserves in the debt service fund. Without the NBIDC’s funding contribution, the City could alternatively fund the $400,000-$450,000 from the general fund, which will have an impact on the City’s provision of core services.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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X |
Yes |
City Plan/Council Priority: |
Strategic Priorities: 1. Use a variety of funding sources for operational and capital needs 8. Maintain fiscal stability of City operations |
FISCAL IMPACT:
This action would provide up to $450,000 to the City of New Braunfels to fulfill the debt service and other financial obligations of the golf course.
Recommendation
COMMITTEE RECOMMENDATION:
The NBIDC approved this project unanimously at its meeting on February 16, 2017.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution.