Item 6B. Glen Lake Golf and Practice Center Proposed 2024 Budget
MOTION TO ADOPT THE 2024 OPERATING BUDGET FOR GLEN LAKE GOLF AND PRACTICE CENTER AND AUTHORIZE THE SUPERINTENDENT TO SUBMIT THE PROPOSED BUDGET TO THE HENNEPIN COUNTY BOARD OF COMMISSIONERS FOR ADOPTION.
The following information was prepared by Howard Koolick; Jeff May; Bill Vollbrecht, Doug Berens and Mark Hill.
Three Rivers operates the Glen Lake Golf and Practice Center under a cooperative agreement with Hennepin County, which is the owner of the facility. The agreement outlines responsibilities of the Park District and the County and creates the Glen Lake Golf Joint Operations Committee, which is composed of staff from the Park District and the County. This committee oversees the operations, maintenance and fiscal affairs of the facility. The agreement also includes a variety of financial issues including how any profits would be allocated between the County and the Park District.
The cooperative agreement calls for the Park District to develop an annual operating budget for the facility, including recommended fees. The annual operating budget is proposed by Park District staff, reviewed by the Glen Lake Golf Joint Operations Committee, recommended to the Park District Board of Commissioners for consideration and, once approved, is then submitted to the Hennepin County Board for adoption.
The Operations Committee reviewed the budget at the August 24, 2023, Operations Committee Meeting. The attached budget packet (Reference 6B-1) provides highlights and details of the Committee’s budget recommendations. If approved and authorized by the Park District Board, the proposed budget is then forwarded to the Hennepin County Board for consideration.
The proposed 2024 budget recommends revenues of $1,107,992 and expenditures of $1,107,992 with a contingency of $138,712 (net revenues). This compares to 2023 budgeted revenues of $1,052,685 and operating expenses of $1,052,685 with a contingency amount of $125,538.
The projected fund balance at the end of 2023 is $706,000. The fund balance goal was established by the Operations Committee at $150,000. As a condition of the Cooperative Agreement between Hennepin County and Three Rivers, the Park District retains 30% of the net profits after the minimum fund balance of $150,000 has been achieved. The Operations Committee has agreed it is in both parties’ best interest to create a capital replacement fund to begin accumulating funds for large capital needs in the next ten years. These needs would include replacement of the irrigation system, driving range nets and other needs identified in the future. The Park District CFO and County staff will be drafting a revision to the cooperative agreement for both organizations to review before the end of the year.
The attached budget for Glen Lake includes:
• 2024 budget summary and work plan highlights
• 2024 revenue and expense summaries
• Fee schedules and comparative rates
• 2024 position complement summary
Relationship to the System Plan
The request for Action supports the following goals of the System Plan:
• Goal 1: You Belong Here
• Goal 2: Parks Matter