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Item No.: 5 Date: February 12, 2024 <br />Presenter: Maggie Jin <br />Presenter: Finance Director <br />Section:Consent Agenda <br /> <br /> <br />Title: Establish the Golf Course Enterprise Fund - Resolution 7450 <br /> <br />1.Purpose: <br />The purpose of this action is to establish the Golf Course Enterprise Fund. <br />2.Background: <br />The Orono Orchard Golf Course was officially opened June 4, 1924 to provide golfing <br />opportunities for both residents and visitors to the City. Prior to March 28, 2011, the Golf Course <br />operated as an Enterprise Fund. Fees and service charges covered the cost of the golf course. At <br />the time, the City determined that the community derives benefit from maintaining and operating <br />the golf course and thus, the Golf Course Enterprise Fund was closed and moved over to the <br />General Fund. <br /> <br />To increase transparency of what taxpayer dollars are utilized for, at the July 24, 2023 Council <br />Work Session, former Finance Director Olson noted that golf course related activity will be <br />transition back over to an enterprise fund. In accordance with the Minnesota State Auditor <br />guidelines for enterprise funds, the pricing policies of the golf course establishes fees and charges <br />designed to recover its costs, including capital costs. Within the last few years, the golf course has <br />been operating at a profit and is anticipated to sustain itself. The City can determine in future years <br />if the golf course may need a subsidy and City Council can elect to transfer funds from the general <br />fund with consideration if the golf course continues to bring value and benefit to the community. <br />3.Staff Recommendation: <br />Staff recommends approval to establish the Golf Course Enterprise Fund. <br />AGENDA ITEM <br /> <br /> <br /> <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to adopt Resolution 7450 Establishing the Golf Course Enterprise Fund. <br />Exhibits <br />Golf Course Fund.pdf <br />40