Source: Great Falls Tribune (Great Falls, Mont.)
A nongolfer who said he's losing his house to taxes protested the city's subsidy of its golf courses at Tuesday night's City Commission meeting.
"Why can't they (golfers) pay their own way? I'm taxed out of my house, and I don't play golf," said the man, who identified himself as Johnny Angry.
"It's a tightrope, what you subsidize and what you don't," Mayor Randy Gray responded. "The city has a responsibility to provide recreation for its citizens," he said.
The discussion preceded the city commissioners' unanimous approval of a write-off of $318,289 in loans to the municipal courses from other city funds. Angry was the only member of the public to comment on the issue.
"It's time to recognize reality. It doesn't make sense to continue these loans," City Manager John Lawton said. The city also has slashed operating funds by $85,000 in recent weeks to bolster the sagging financial condition of the Eagle Falls and Anaconda Hills courses.
The debt-ridden courses lost $250,000 over the past fiscal year, Lawton said. "We have to make up that deficit," he said.
The most attractive option for reversing golf's losing ways is to increase play at the two city courses.
"Unfortunately, golf play has peaked and is dropping off across the country. We have to deal with that," he said.
Less attractive solutions, he said, are continued general fund subsidies, higher fees and even more cost cutting.
"The purpose of writing off these loans is to avoid another general fund subsidy," the city manager said.
Last year, that commitment produced a $120,000 cash transfer from the general fund to the golf course fund. In fiscal 2003, a similar transfer of $185,000 was made.
"Subsidies take away from other general fund needs," he said. Police, fire and public safety make up the largest part of the general fund.
The largest of the loans that was written off is the $248,289 balance of a $400,000 loan from the Park Land Trust, a savings account that provides money to develop city parks. The money was used to complete the irrigation system at the Eagle Falls course in 2000.
Also to be forgiven are a $50,000 loan balance from the Insurance and Safety Fund for a maintenance shop and restrooms at the Anaconda Hills course and $20,000 owed to the Insurance and Safety Fund on a loan for a lunchroom and restrooms at Eagle Falls.
Both of the smaller loans were needed to satisfy health and safety violations found by the Montana Occupational Safety and Health Bureau.
Even after forgiving the debt, the city courses will still fall short of revenue requirements to meet bond covenants, according to a report by Melissa Kinzler, city budget officer.
The city spent almost $3 million remodeling 14 holes at Eagle Falls Golf Course, and about $2.1 million is still owed to bondholders.
In other business, commissioners unanimously approved a resolution that gives them flexibility in financing ongoing and future wastewater treatment projects.
Basically, the action allows the city to go into debt for the improvements through revenue bonds when the market is best to do so. If city sanitary sewer funds are spent in the interim, the resolution authorizes reimbursement of the city's sewer fund from bond proceeds.
Up to $4.6 million worth of improvements are covered by the resolution.
Two weeks ago, commissioners approved a $1.4 million contract for the second phase of the sewer main to the Agri-Business Park. They also bought $330,000 worth of equipment for a sewage lift station for the ag park.
Yet to be awarded is a co-generation project at the wastewater treatment plant. Expected to cost up to $2.5 million, the project will capture excess methane gas which is currently burned off at the treatment plant and convert it into electricity and heat for the plant.
Earlier this year, commissioners approved a feasibility study of the co-generation idea. At the time, they figured co-generation might save up to $300,000 a year on the treatment plant's utility bill.