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Council transfers state aid to clubhouse project, authorizes final payoff of 2020 deficit financing
Summary
Council members approved moving state aid into the golf-clubhouse capital project account and voted to pay off the remaining deficit financing tied to prior borrowing; payoff avoids continued interest charges and ends state controller quarterly oversight tied to the borrowing.
The Common Council approved transferring $323,000 in state aid (placed temporarily in the golf fund contingency line) into the capital project account for the Amsterdam Municipal Golf Course clubhouse construction and authorized final payment on the outstanding deficit financing tied to earlier borrowing.
Alderman Marticello and Alderman Carpenter moved the transfers related to the clubhouse and the final payoff of the deficit financing. The resolution on the deficit references a 2020 deficit financing issuance of $7,689,034 in bond anticipation notes to offset accumulated losses across the general, sewer and golf funds. Council members were told the city has funds available to pay the remaining assessed bond portion tied to the golf course; making the payment will avoid approximately $20,000 per year in interest charges that would otherwise continue.
During discussion, the mayor thanked the state controller’s office for quarterly audit support provided since the deficit financing and noted that paying off the debt will end that external oversight. The mayor said the city will form a local budget committee to continue quarterly financial reviews previously assisted by the state auditors.
The council also amended and approved a budget transfer affecting golf maintenance equipment and electricity: line-item language referencing a used Toro utility cart purchase was changed to read “$2,500 toward additional equipment as needed.” The amendment carried unanimously and the overall budget transfer passed on roll call.
Why it matters
Paying off the 2020 deficit financing eliminates continuing interest expense and moves the golf fund and related city finances closer to self-sufficiency, according to council discussion. The transfer of state aid to the clubhouse project lets construction bills already incurred be paid from a capital project account rather than contingency.
Quotes
“We’re very pleased to say we’re paying it off,” Alderman Marticello said when describing the remaining bond-assessed amount for the golf fund and the annual interest savings of about $20,000 if paid now.
Next steps
Controller and finance staff will execute the transfers and record the payoff; the city indicated it will form a budget committee to continue quarterly oversight formerly supported by the state controller’s auditors.
