2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, WashingtonATTACHMENT G-1NOTES TO GOLF ENTERPRISE FUND1) The Green Fees are expected to increase modestly as a function of both increased players’participation and periodic greens fee increases. This model is at zero growth for golfrounds and includes only a $1.00 increase in green fees every two years.2) The Golf Course’s share of general obligation bond 2003 was assumed by a governmentalfund in 2011.3) General Fund Contribution is the portion of the City’s sales tax revenue that will betransferred to the 411 Golf fund to cover Admission tax, Indirect Cost Allocation, andWorking Capital Reserves.4) Assumptions for Operations and Maintenance include: removal of the Parks andRecreation’s Director’s 25% of salary and benefits and 50% of the Golf Maintenancebuilding will be covered by the Parks Department.5) Indirect Cost Allocation will be calculated on an annual basis.6) The Working Capital Reserve Fund’s policy was approved in late 2009 and updated in2012 to maintain an adequate fund balance in each of the enterprise funds. A minimumof 20% of the prior year’s operating revenue must be set aside as a designated reservefund.Golf Enterprise FundThe City’s Enterprise Funds account for operations that are self-supported through usercharges. The funds are financed and operated like a private business enterprise which requiresperiodic determination of revenues earned, expenses incurred, and net income for capitalmaintenance, public policy, management control and accountability. The Golf Enterprise Fundaccounts for operation, maintenance, debt service and improvements of the municipal golffacility. The difference between the other utility enterprise funds is that Golf has voluntaryusers as opposed to involuntary users of the water, sewer, and surface water funds.Page 368