Hillsboro council approves purchase of golf and utility carts using local sales tax fund

The City Council of Hillsboro voted unanimously to authorize the purchase of golf and utility carts from the vendor referenced in the meeting transcript (appearing as both “Maske” and later as “Mesa” Golf Car Company), using money from the city’s local option sales tax fund.

A staff member told the council the city declined a proposed Yamaha lease and instead recommends buying the carts outright and amortizing the cost internally. “We opted not to go with the Yamaha lease,” the staff member said, adding that purchasing through the local sales tax fund would avoid lease issuance costs and preserve asset equity.

Council discussion focused on how to structure the internal repayment. The staff member proposed a four‑year amortization schedule — the same term the prior lease used — so the city can set rental rates that remain affordable while repaying the fund. The staff member said the local option sales tax fund has “close to 500,000 in it,” and estimated the purchase could be paid off in roughly four years with modest increases in cart rental revenue.

Council members debated whether the fund should be charged internal interest. The chair said the city should not lend the money for free: “We’re taking money from basically a taxpayer supported fund and using it into a revenue generating operation. And that in my mind, that revenue generating operation shouldn’t get it for free.” Staff suggested matching the city’s KMIP/CD earnings (around 3.8–4 percent was discussed) or setting a modest internal rate rather than a market rate of up to 6 percent.

A council member asked whether payments would be seasonal or year‑round; the staff member said the city could structure repayments as desired and would work with the auditor on the technical fund transfers required by the local option sales tax rules. Staff also said they could write a purchase order and coordinate delivery once the budget amendment and purchase paperwork are complete.

Councilman Jorgensen moved to authorize the purchase, and the motion was recorded as seconded by Councilman Wilkins. The chair called for the vote and confirmed the motion carried unanimously. Staff were asked to prepare the budget amendment and the purchasing documents.

The transcript records the vendor name inconsistently (appearing as both “Maske Golf Car Company” and “Mesa Golf Car Company”); staff said they had been in contact with a vendor representative named Doug Cofer to arrange transport and expected delivery timing for upcoming events. The council did not provide a detailed dollar figure for the purchase price in the meeting record; staff discussed a planning estimate that would be amortized and factored into the next budget amendment.

The council adjourned after brief additional remarks about maintenance scheduling for the golf course and related city projects.