Parma budget hearing: New golf center budget relies on projected revenue; council to monitor bond exposure

Madam Chairwoman opened discussion as recreation staff presented the proposed 520 golf‑center budget, saying the account is currently classified as an enterprise account and includes many new, revenue‑linked line items created for the facility. Recreation Director Mickey Vittardi said the budget was built from scratch and relies on revenue projections for positions such as bartenders, kitchen staff and a part‑time assistant manager.

Vittardi highlighted that many expense lines (workers’ compensation, PRS, Medicare) are wage‑based and will scale with staffing levels and actual business. He pointed to a drive‑through service and on‑site events as key revenue drivers and said a performance bonus pay line—described as substantial—was structured to reflect only dollars earned rather than a direct city subsidy. He also thanked the law department for guidance on handling cash tips and PRS-related constraints.

Council members asked detailed questions. Chair asked whether the number of ranger/starters was increasing after the ranger starter line rose from about $59,000 to roughly $99,000; Vittardi confirmed a slight increase in staffing. Councilwoman Boyd asked whether the pro‑shop line was for inventory purchases; Vittardi said it was for merchandise to be sold (logo apparel, hats, etc.). Boyd also pressed on the water budget; Vittardi said the budget reflects about a $30,000 increase over prior actuals and covers both the facility and course irrigation, but noted weather variability could change costs.

Councilwoman Line and others questioned steep increases in credit‑card fees and Ohio Lottery revenue projections; Vittardi and service staff said those lines are tied to transaction volumes and that new event‑center software (Toast) carries subscription costs but improves operational efficiency. On timing, Vittardi said two soft openings are planned in March with a ribbon cutting about two weeks later and that golf operations will proceed when weather permits.

Councilmembers raised concerns about long‑term debt. Councilwoman Lime urged that council revisit the golf center’s financial performance in June and September because bond payments may require general‑fund support for several years. Auditor Brian Day later told council the golf fund will be reclassified as a special‑revenue fund because, under government‑accounting rules, the fund is unlikely to be fully self‑sustaining while bond payments remain outstanding. Day added that any leftover bond proceeds can be used only to pay down that debt.

Next steps: staff will proceed with projected soft openings and continue to refine revenue estimates; council asked for periodic updates mid‑year to evaluate whether the enterprise can meet forecasts or will require transfers from the general fund.