City of Madison, Wisconsin | Legislative Information Center
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File #: 57618    Version: 1 Name: Authorizing a long-term advance from the General Fund to the Golf Enterprise Fund to provide sufficient cash to meet ongoing expenses and obligations.
Type: Resolution Status: Passed
File created: 9/25/2019 In control: Parks Division
On agenda: 10/15/2019 Final action: 10/15/2019
Enactment date: 10/19/2019 Enactment #: RES-19-00728
Title: Authorizing a long-term advance from the General Fund to the Golf Enterprise Fund to provide sufficient cash to meet ongoing expenses and obligations.
Sponsors: Satya V. Rhodes-Conway
Fiscal Note
This resolution authorizes a long-term advance from the General Fund to the Golf Enterprise Fund (Golf) to provide sufficient cash to meet on-going expenses and obligations. At the end of 2018, Golf had a cash deficit of $813,340, that required an advance from the General Fund to be noted in the 2018 financial statements. Given the on-going financial weakness of Golf, this advance could not be repaid within one-year and was designated as a long-term advance, with that amount reserved as non-spendable in the General Fund balance, thereby reducing the unassigned fund balance in the General Fund by $813,340. It is anticipated that expenditures will again exceed revenues in Golf in 2019, necessitating another advance from the General Fund. As such, this resolution authorizes additional cash advances in anticipation of developing and implementing a long-term plan to return Golf to financial solvency and establishes a repayment schedule. Interest will be charged on the outstanding principal of this advance at the rate of investment earnings in the city's cash pool plus 0.25%.

Title
Authorizing a long-term advance from the General Fund to the Golf Enterprise Fund to provide sufficient cash to meet ongoing expenses and obligations.

Body
The Golf Enterprise Fund has been in a cyclical negative cash position for over a decade due to on-going structural deficits between revenues and expenditures. Significant revenue losses in fiscal year 2018 due to flooding exacerbated those structural and systemic deficits. As of December 31, 2018, the Golf Enterprise Fund was in a negative cash position that totaled $813,340. The Golf Enterprise Fund anticipates an additional cash shortage of approximately $500,000 by the close of 2019, which would increase the projected cash deficit upwards to approximately $1,300,000 at year-end.

The Golf Enterprise Fund seeks a long-term advance not to exceed $1,500,000 from the General Fund to finance its cash deficit po...

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