Council debates use of venue tax, golf course funding and $80,000 billboard lease

A lengthy council discussion at the July budget workshop centered on how to use venue (hotel/occupancy) tax revenues, the golf course budget and an $80,000 annual billboard lease.

Staff presented the venue-tax plan for FY2026 showing total venue tax receipts budgeted at about $1.9 million, a $1 million transfer to the general fund to help offset parks costs, a $101,800 transfer for golf-course capital (golf carts) and an $800,000 reserve set aside in the venue-tax fund for future golf-course capital projects subject to council approval. Staff said the golf-course architect will present recommended capital improvements (greens, bunkers, irrigation, tees) on Aug. 5.

Marketing and sign revenue: Staff showed a $225,000 marketing budget for the golf course funded from the hotel/occupancy tax. Councilmember concerns focused on two items: (1) whether the $80,000 per-year billboard lease (the city27s leased frontage-road sign) should be credited to the golf course or moved to the general fund, and (2) whether the city27s allocation method for general‑and‑administrative charges to the golf course should be changed.

Councilmember discussion split: Several councilmembers (including Mr. Goldby and council members who spoke in favor) argued the billboard lease revenue should remain with the golf course because the golf course lost the original highway signage when parts of its property were repurposed for hotel development and the sign helps "heads to beds" marketing for golf tournaments and regional guests. They also argued providing marketing support to the golf course could reduce its dependency on venue tax over time and free venue tax to support parks.

Other councilmembers (including Councilmember Vaughn) urged returning the billboard receipts to the general fund, arguing the general fund has pressing public-safety and pedestrian-safety needs. A separate point of contention was a staff-recommended reduction in the golf course27s internal administrative fee (a cost-allocation change) that some councilmembers said reduces general-fund support for the course without a compensating cost reduction.

Operational notes: Staff said the golf course projects to cover most operational costs from earned revenue but still expects some transfers from venue tax for capital and replacements. The golf course manager (Sal) and staff presented a five-year capital/asset schedule that includes a plan to replace the full fleet of golf carts in about three years to standardize fleet retirement and reduce staggered purchases.

Next steps: Staff proposed holding a focused meeting to resolve remaining questions about golf-course financing and the billboard revenue allocation; the golf-course architect visit and a detailed capital plan are scheduled for Aug. 5. No formal vote on venue-tax allocations, billboard receipts or the administrative charge change occurred at the workshop; council members asked for additional information and a follow-up meeting.

Ending: The question of routing the $80,000 billboard lease and the appropriate marketing level for the golf course was left to further council discussion and a planned Aug. 5 agenda item with the golf-course architect.