Minutes 06-01-81MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL HELD AT CITY HALL,
BOYNTON BEACH, FLORIDA, MONDAY, JUNE l, 1981
PRESENT
Edward F. Harmening, Mayor
Walter "Marty" Trauqer, Vice Mayor
Joe deLong, Councilman
Patricia Woolley, Councilmember
Samuel Lamar Wright, Counc±lman
Peter L, Cheney, City Manager
Tereesa. Padgett, City Clerk
James Vance, City Attorney
Mayor Harnening called the meeting to order at 7:30 P. M.
Golf Course
City Manager Cheney opened the discussion in regard to the proposed
golf course by reviewing the time table of scheduled events toward the
construction of the mun£cipal golf course.
He provided the Members of Council an updated Financial Projection on
the 27 hol~ course, dated June l, 1981. Copy attached hereto.
Mr. Cheney explained that this report is based on 11.5% interest,
and every effort has been made to assure the bond buyers that they
are buying a safe bond. Tt is-proposed to set aside reserves each
year to further protect the bond buyer if we should have a bad year.
Councilman deLong reported that several people had indicated to him
that they felt this course could be built for less. He encouraged
those individuals to speak up at this time. He expressed his think-
ing that while we were mov±ng on this subject~ we should keep things
rolling.
Councilman Wright expressed his concern that this project will be
self supporting f±nancially.
The Mayor questioned whether the Council preferred 27 holes or 18
holes. The concensus of the Council was to proceed and go first
class with the 27 hol~ course,
The audience took part in the discussion of all angles of develop-
ment, f±nanc±ng and operation of the golf course, Many suggestions
were made. The Council took their remarks under consideration and said
they would take action at the Regular Council Meeting, Tuesday
even±ng, June 2, 1981,
Mayor Harmening introduced the four members of the Golf Committee
that were in the aud±ence and had taken part in the discussions:
MINUTES - SPECIAL ~MEETING OF CITY COUNCIL
June 1, 19~81
1. George Barrett
2. Joseph A, Sc~ortino
3, Benjamin Katz
4, Irving Gross
ADJOURNMENT
The meeting adjourned at 8:45 P.M.
CITY OF BOYNTON
FLORIDA
Mayor'~
yor
ATTEST:
~ty Cler
~ e~~Secretary
~2 Tapes)~
- 2 -
BOYNTON
BEACH
GOLF
COURSE
27 Hole
FINANCIAL PROJECTi6N
June i, 1981
Course
ESTIMATED
BOYNTON
Construction
Earth Moving
Culverts
Irr igat ion
Tile Drains
Fine Grading
Greens Mix
Grassing & Fertilizer
Grass ing In
Cart Paths
Trap Sand
Golf Course Landscaping
Clubhouse Landscaping
Sub Tota 1:
CONSTRUCTION COSTS
BEACH GOLF COURSE
18 Holes
390,000
30,000
275,000
19,000
130,000
60,000
60,000
100,000
72,000
.30,000
150,000
1,0,000
1,326,000
27 Holes
$ 520,000
40,000
380,000
28,000
170,000
85,000
80,000
-120,000
108,000
40,500
200,000
10,000
1,781,500
Buildings
Ma intenance Building
She lters
Clubhouse
Ca rt Storage
Sub Total:
Equipment
Maintenance
Tees
Carts
SUb Total:
Road & Parking
Utilities
Design Fee
Total:
80,000
24,000
360,000
90,,000
554,000
200,000
10,000
110,000
320,000
83,000
33,000
129~000
$2,44'5,000
100,000
36,000
360,000
90~000
586,000
240,000
15,000
132,000
387,000
83,000
33,000
129,000
~$2,999,500
6/1/81
.TOTAL BOND ISSUE
Total Construction Cost
1981 Dollars
Attendant C6sts Bond Discount
Estimated Issuance Cost
One Year Interest
Capitalized Reserve Account
(lst Yea'r Revenue Shortfall
Interest during Construction)
Total Attendant Costs
18
$2,4~5,000
68,000
69,000
392,000
416,000
945,000
27 Hole
$2,999,500
83,500
84,500
479,000
509~000
1,156,000
Total Bond Issue
$.3,390,000
$4,155,000
Estimate~ Maximum Annual
Debt Service
$414 ~ 850
$512,825
ESTIMATED ANNUAL OPERATING INCOME
BASED ON 500 MEMBERS AND 70,000 ROUNDS
FOR 18 HOLES
AND 30,000 ROUNDS FOR 9 HOLES
N~mber of memberships
Single 325
Family .175
Total 500
Rounds played annually (18-hole equivalents)
By single memberships (325 x 80)
By family memberships (175 x 120)
By non-members paying green fee
Tota 1
26,000
21,000
.23~000
70,000
Rounds played annually (9-hole Executive)
30,000
Income from Memberships and Green Fees
Annua 1 Fee
Single members (325 x $550)
Family members (175 x $650)
Total Membership Fees
$178,750
...113,750
292,500
Green Fees
23,000 ~ $10 (18 Holes)*
30,000 ~ $5 ( 9 Holes)
Total Green Fees
230,000
'...150,000
380,000
Total Playing Fees
Cart Rentals
70,000 x $6 (18 Holes)
20,000 x $4.50 (9 Holes)
420,000
90~000
Sub Total:
Range Balls
28,000
Locker Renta Is
10 000
Food & Beverage Concession**
0
Miscellaneous & Interest Income
40~000
Tota 1 Income
6/1/81
$67'2; 500
510,000
1,182,500
_ 69,000
.$I, 251,500
*Midpoint between winter & summer rat'es ('$12 & $8)
**Breakeven operation assumed for this analysis
6/i/8i
.ESTIMATED ANNUAL'
OPERATING EXPENSES
18 HOLE COURSE
Salaries
Fringe Benefits
Ut il it ies
Fertilizer & Chemicals
Equipment Ma intenance
Insurance
Other Direct Expenses
Sub Tota 1:
Deprec ia t ion
Golf Carts
Maintenance Equipment
Clubhouse Furniture
General Allowance for
Replacement of all'
Facilities
Tota 1:
1st Year 2nd Year 3rd Year
$180,000 $180,000 $180,000
54,000 54,000 54,000
30,000 30,000 30,000
45,000 45,000 45,000
25,000 25,000 25,000
20,000 20,000 20,000
65,000 65,000 65,000
419,000 ~19,000 419,000
25,000 25,000
30,000 30,000
45,000 ..... 45,000
$419,000 $519,00.0 $519,000
Annual Operating Expenses
(140% of 18 holes)
- 27
holes
$586 600 ~ $726,600
6/1/81
27 HOLE
CASH FLOW
CONSTRUCTION PERIOD &
THREE YEARS OF OPERATION
'Operating Revenue
Operating Expenses
Net'Operating Revenue
7 Month
Construct ion
Per iod
Revenue from Interest on
Interest Account (479,000)
Operation Years
First Second Third
· Interest from Capital
Debt Service Reserve
(512,000)
$ ~876i000 $1,251,000 $1,251,000
587t000 727,000 727,000
'$ ~289,000 $ 524,000 $ 524,000
Interest on Construction
AccOunt
$28,000 14,000
NET INCOME:
35,000 .51,000 51,000 51,P00
_.137,000
$200,000
$354,000 $575,000 $575,000
Interest Payment on Bonds'
During Construction
Portion of Bond Issue
for Same
Annual Debt Service
(479,000) '
479,000
240., 000 512 , 000 512·, 000
NET ANNUAL INCOME AFTER
DEBT SERVICE
200,000 : 114,000 63,000 63,000
-.~ NET CUMULATIVE INCOME .$314,000.
$377,000 $440,000