Board mulls golf course requests

In the red $288,940 in 2011, Thunder Bayou Golf Links' 2012 proposed budget is about $100,000 less than last year's, but that may change.

During a lively discussion Friday night, Golf Facilities board president Jim Vincent told the Blytheville City Council's Finance and Purchasing Committee that the $179,150 salary figure doesn't account for a new golf course superintendent.

"That's not going to fly," Vincent said of the personnel portion of the $540,607 proposed budget.

He noted when former golf course superintendent Jeff Haskins left, Mayor James Sanders took the position out of the budget.

Vincent said the current interim superintendent is unable to fulfill the duties permanently because of his health.

He proposed either hiring another superintendent, projected to cost between $65,000-70,000, or keeping Ron St. Laurent as the supervisor and hiring another person to do the field work for $30,000-35,000 a year.

Vincent noted St. Laurent's health won't allow him to do the field work.

The board planned to discuss the matter further.

Vincent wanted an additional budget line for equipment, saying the course needs a front end loader to dump sand in the sand traps.

Vincent also said the irrigation repair and maintenance line must be raised from $6,100 to $12,000 because flooding damaged the irrigation system.

He noted the city is out $17,000 as a result of last year's flood.

"We've had two floods," Vincent said. "It was partially repaired the first time and destroyed the second time. We didn't pay the company and as a result they didn't finish the work. We finally got them paid last week and now they are coming out to finish the work. We've already paid the bill from two years ago and now we're going to get another one for $7,000."

Councilwoman Shirley Overman, who chairs the committee, asked if the finance office approved the request.

"We have a $7,000 estimate to repair it," Vincent responded. "There's no ifs ands or buts about it. That's our irrigation system. Why do we have to get it approved if it's in the budget?"

Overman said: "Just because it's in the budget, doesn't mean the money is there."

Councilman Stan Parks added the golf course must get a purchase order.

"Because bills weren't paid and the office up front said they couldn't do it, the golf course is going down hill," Vincent said. "I don't see anyone in the front office telling me that we can't fix it because of some reason. I understand the PO system."

Overman noted it must be reported to keep up with the budget.

Vincent agreed that's how it should have been done all along.

Thunder Bayou's initial proposed budget is $540,607 in expenditures versus $300,000 projected revenue.

According to the city's Statement of Revenue and Expenditures, the golf course collected $304,323.32 and spent $593,264.02 in 2011, a deficit of $288,940.70.

"We have a deficit of $288,941 last year," Overman said. "Now we don't expect the golf course to make money. We don't expect any of our parks and recreation to make any money. But this is the largest deficit that we have in parks and recreation. We have to be very careful what we spend and we have to always ask, can we spend it? Do not spend it without asking."

Vincent said: "If you run a business and you're within your budget and your making the money to do that, how can you deny the expenditure?," Vincent responded.

Finance director LaVera Kuykendall said the budget is simply a tool describing what the city plans to do if funds are available.

"Here's the problem: Before they never went to the budget and got it taken off indicating you had so much left so they kept spending and spending and spending," Vincent said.

Overman said: "We are projecting a revenue and we are projecting expenditures. Nothing is set in concrete. We don't get $16 million at the first of the year."

She was referring to the proposed 2012 budget that shows $16,474,803 in projected revenue versus $15,936,031 in proposed expenditures.

Last year, according to financial records, the city's revenue was $11,059,321.30, while its expenses tallied $9,567,840.88. Overman noted all the revenue and expenses aren't in for 2011. The Statement of Revenue and Expenses report shows the city started 2011 with a deficit of $147,227.93 and ended with a balance of $872,228.27.

Vincent took issue with the city's accounting system.

"I have been looking at the revenues, expenditures and so forth," Vincent said. "There's so many discrepancies here that I don't see how we can have the correct numbers."

Overman said Vincent is used to working with large corporations.

"They made money by doing it right," Vincent said.

Vincent added he is "running this like it's my business."

"Nothing can be done with the golf course," Vincent said, according to his research. "We can't sell it; we can't lease it; we can't do a thing with it. You can put that to bed. The IRS cannot take it because federal money was used to build it. Not directly, but because federal money was used to build the first golf course and they converted it over to this one, that's untouchable. So we have to keep it up to standards."

Vincent backed off a little, acknowledging he wasn't definite on the inability to lease.

If leasing was an option, the course fees would have to be at a level the average person could afford.

"And as it stands right now, no company would want it, not losing the money that it does right now," Vincent said.

Vincent told the board he is working on a grant for a new building.

"At what point do you let the building deteriorate to nothing because you can't spend the money on it?," Vincent asked.

"Until you get the money to do it," Overman responded. "We've had that in the plans from the beginning."

"If you do that to certain parts of the golf course, you might as well close it because you're going to ruin it," Vincent said.

He also took issue with the excise tax being in the budget, saying it is not a budget-able item.

"No, you don't do that! You cannot do that!," Vincent said. "That money is not your money to use. It should not go in the general revenue. That money is a pass-through item collected by you, held in trust until you give it to the city. And that money should be directly deposited into a tax account at the bank."

Asked how she handles excise tax, Kuykendall said the city pays excise tax and charges to each department.

Overman said officials could further discuss the issue at a Parks and Recreation Committee meeting.

She did caution Vincent about purchasing too many items for resale.

Vincent noted the golf course averaged a 40 percent mark-up on its items last year, and should be able to replace what it sells.

"You're talking to a businessman here," he said. "We understand that. But one of the things I don't like: you're mixing sales budgets with (the regular budget)."

Some golf course projects are expected to be paid out of the 1/4-cent parks and recreation tax, which is projected to generate between $600,000-700,000 this year.

Councilman Monte Hodges, who chairs the Parks and Recreation Committee, suggested "spreading the tax around appropriately" in the parks system to aid the general fund.

mbrasfield@couriernews.net