Fiscal Note
The final report of the Task Force on Municipal Golf in Madison Parks proposes 10 changes to the operations of the City’s Municipal Golf Program. Many of these changes, if adopted, will result in a fiscal effect. Changes with the greatest fiscal implications include:
1. Establish a plan and timeline to eliminate 18 holes at Yahara Hills: The fiscal impact is unknown at this time, but it is likely that there would be expenditure savings from the reduction in holes at Yahara. Annual expenditures averaged $1.3m from 2016 to 2019, with course deficits ranging from $47k to $125k each year.
2. Issue an RFP to evaluate a private or non-profit operator for Monona: Annual expenses of operating Monona range from $460k to $523k, with revenues ranging from $380k to $443k. From 2016-2019, revenues were not sufficient to cover expenses.
3. Ensure that if City resources are used to invest in capital projects at golf courses, it is done in an equitable and fiscally responsible manner to reduce negative impact on park services: The Task Force report outlines the capital needs of the courses, which include increased capital costs of $28-57 million over the next 20 years, and annual operating costs of $4.9-7.4m in debt service.
4. Not sell park land to fund capital improvements of the golf courses.
Additionally, the Task Force recommends removing the enterprise fund designation from the City’s golf courses. While no fiscal impact is anticipated, designating golf as an enterprise fund allows for closer tracking of assets, liabilities, cash flow and other measures of this program activity. This designation does not prohibit providing a property tax subsidy to golf operations, if that is a priority of the Mayor and Common Council. It does reflect that golf is primarily a business activity of the city and is primarily funded by user fees.
The Parks Division did not reflect any Task Force recommendations in their 2021 budget request. The budget request reflects revenues th...
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