CITY COUNCIL WORK SESSION

Tuesday, April 18, 2006 6:00 p.m.

Public Safety Building

3925 W Cedar Hills Drive, Cedar Hills, Utah

Present:           Mayor Mike McGee, Presiding

Council Members: Joel Wright, Charelle Bowman, Jim Perry, Eric Richardson (6:55 p.m.)

                        Konrad Hildebrandt, City Manager

                        Rich Knapp, City Accountant

                        David Taylor, Assistant to the City Manager

Others: Mark Edminster, Cecil Read (6:38 p.m.), Chad Kitchen (6:38 p.m.), Brent Uibel

1.         This Work Session of the City Council of the City of Cedar Hills, having been posted throughout the City and the press notified, was called to order at 6:23 p.m. by Mayor McGee.

2.         Report on Fiscal Year 2007 Budget (July 1, 2006 to June 30, 2007) (6:23 p.m.)

See handouts. Rich Knapp and David Taylor presented the golf budget. The projected revenue for FY 2006 is $655,200 and is based on two years of historical data. Because the data is so limited, it is not very reliable. Revenue increase from actual 2005 revenue to projected 2006 revenue is 5.5%. The golf course management has requested a 3 percent increase for payroll. Mayor McGee said that the request is more than 3 percent because golf course management also requested that $24,000 be taken out of payroll. There was a decrease in total expenditures of 9.9%, much of it due to the decrease in debt service. The tent is lease-to-own. There are interested buyers for the tent.

The projected FY 2007 shortfall is $514,106. That number includes debt service and is based on 28,000 rounds; breakeven rounds is 35,777 (excluding debt service). Debt service for 2007 is $385,000. A resident fee would cover only the debt service. The Council is concerned that the gains in revenue seem to be going to golf course management.

3.         This meeting was adjourned at 7:08 p.m. by Mayor McGee.

Kim E. Holindrake, City Recorder