The URL can be used to link to this page

Home My WebLink About08/16/1988, 4-A - GOLF COURES FEES CONT (2) ��►��i��IIIII��Ji ��lll city of San tins OBISpo COUNCIL AGENDA REPORT Golf Course Fees Page 5 Alternative 2 Modify the fee structure; raise fees to cover all program outlays. Under Alternative 2 the fee structure would be simplified and made more equitable by eliminating the fees for 18-hole play, the monthly fees and the 10 percent senior discount. The 10-play card fee would stay in effect, serving in lieu of the monthly fee and providing a reasonable 16 percent discount available on weekdays. All fees would increase 23 percent but would fall within the range of fees at Pismo State Beach and Sea Pines. Experience at both Laguna Lake and Sea Pines has shown that eliminating the monthly fees and the senior discount should not diminish overall demand as long as remaining fees stay competitive. Table C shows the effects of Alternative 2 over five years. Table F compares the fees under this alternative to existing fees and to fees at similar courses. Alternative 2 is the recommended alternative. Alternative 3 Modify the fee structure; raise fees to cover direct and indirect costs only. Alternative 3 is similar to Alternative 2 -- various fees and the senior discount would be eliminated -- but remaining fees would cover only direct and indirect costs. Capital improvement costs would be balanced by general fund contributions or financed directly from the capital outlay fund. Under this alternative fees would be raised 7 percent -- enough to cover direct and indirect costs. This alternative would require changing adopted budget policy to allow subsidization of capital improvement for the golf course enterprise by the general fund or the capital outlay fund. Table D shows the effects of Alternative 3 over five years. Table F compares the fees under this alternative to existing fees and to fees at similar courses. Alternative 4 Modify the fee structure; raise fees to cover direct costs and capital improvement only. Alternative 4 is also like Alternative 2 -- various fees and the ��i�►►�Illll�� ll City Or San tins OBISPO COUNCIL AGENDA REPORT Golf Course Fees Page 6 senior discount would be eliminated -- but remaining fees would cover only direct costs and capital improvement. Indirect costs would be balanced by general fund contributions. Under this alternative fees would not have to be raised at all over the five year period projected. This alternative would also require changing budget policy to allow general fund contributions to the golf course fund. Table E shows the effects of Alternative 4 over five years. Table F compares the fees under this alternative to existing fees and to fees at similar courses. FISCAL IMPACT SUMMARY: The fiscal impacts of the alternatives are summarized in Tables B through F. Those tables show that: 1) Alternative 1 would require a 53 percent fee increase and would place fees substantially above fees at similar golf courses. Under Alternative 1, fees would cover all program costs. 2) Alternative 2 would require a 23 percent fee increase and would result in fees comparable to and competitive with fees at similar courses. Under Alternative 2, fees would cover all program costs. 3) Alternative 3 would require a 7 percent fee increase and fees would remain much lower than fees at similar courses. Under Alternative 3, fees would cover only direct and indirect costs -- capital improvement would be subsidized by general fund or capital outlay fund contributions. 4) Alternative 4 would require no fee increase and fees would remain much lower than fees at similar courses. Under Alternative 4, fees would cover only direct costs and capital improvement -- indirect costs would be subsidized by general fund contributions. STAFF RECOMMENDATION: Staff recommends that the council by resolution approve the changes '(T7