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cost allocation

6 posts
  1. Eric Morrison
    Eric Morrison avatar
    0 posts
    1/28/2019 7:01 AM
    The Town of Groton CT manages a public golf course that is run through a special revenue fund, so operating expenses are not tax supported. One of the expenses in the operating budget is Payments/Contributions which is a payment to the Town for expenses associated with services (payroll, human resources, purchasing) provided by various departments. Payment to the Town is based on a percentage of total golf course operating expenses. We are interested in what other municipal golf courses are charged and how the formulas are developed or calculated.



  2. Melvin Waldron
    Melvin Waldron avatar
    43 posts
    1/28/2019 8:01 AM
    Eric,

    From what I see in our budget sheets, our golf courses, which are enterprise funded, do not pay for work done by our city's departments, or even internally our park's department. Our Park's department is a quasi-department receiving funds from both our city and county, and operates as an independent board, (but any decisions the board makes, must still be approved by city council and county commission. All finance, HR, employee policies, etc is dictated by the city.

    There could be something in the parks department budget that might pay for those services, we seem to have one person in purchasing, HR, and up to deputy city manager that oversees Parks as a whole. There was talk of that many years ago, that we as a department would pay for those services but, it might not have happened, as the parks department stopped accepting any annual financial support from the city. Even when we have building maintenance work done by parks maintenance crews, the only thing charged to our budgets are materials.

    I do wish they would fund infrastructure projects though outside of our golf fund. That is where we tend to struggle, when a project is done, and it is typically at our "Crown Jewel" course, it leaves no money for us to do any type of project.

    Hope that helps.

    Mel

    Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO

  3. Kevin Clunis
    Kevin Clunis avatar
    0 posts
    1/28/2019 10:01 AM
    For the Village of Luck, we are are charged 11% of clerks Wages and benefits to the golf course for their administrative responsibilities. The main things they do is pay bills on a weekly basis and take care of payroll. This system has been in place long before I got here. We are run as an enterprise fund and are still paying back the village for previous loans to stay a float. As of now, everything is running smoothly.

    Kevin Clunis CGCS
    Luck GC
    Luck, WI



  4. Andy Jorgensen
    Andy Jorgensen avatar
    1 posts
    1/30/2019 11:01 AM
    Privately owned, but similar situation. Our medical benefits are divided by the number of department employees. Therefore, even though most of my guys don't take the insurance, I'm paying a higher total because other departments have more users while they pay less. Likewise, I'm charged IT fees the exact same way, which means I'm based on my percentage of employees even though we only have six computers compared to the accounting department that has 100% employees with computers. It's not fair, but I'm not sure how else to fix it.



  5. Eric Morrison
    Eric Morrison avatar
    0 posts
    2/1/2019 5:02 AM
    Thanks for the information gentleman.
    Eric



  6. Jeff Plasschaert
    Jeff Plasschaert avatar
    0 posts
    2/21/2019 8:02 AM
    Reid GC is operated as an enterprise fund for the City of Appleton, WI and is not a burden on the tax payers. We pay a flat rate of $17,900 to the general fund for HR services, city attorney's, finance employees etc. This rate has been in place since before I began and does not seem to be changing anytime soon, I would fight hard if it were to rise because the golf course also pays for portions of Park and Rec Director, deputy director, administrative assistant and finance account supervisor salary and fringes for an additional $14,300 above the $17,900 charged from other areas. We also get charged back for all other internal services provided by other city departments, forestry, public works, facilities, etc. when they are doing work for the course. Taking a $56,000 storm sewer assessment this year too. Nothing like starting the year off with a steep uphill climb.



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