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Ice rink slips into the red yet again
Friday, Dec. 11, 2009
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The Charles County commissioners have approved a quick fix to bring the Capital Clubhouse out of the red, but it's a problem that board members and staff agree will need a permanent solution next year.
On Tuesday, the board approved a fiscal 2010 budget amendment that transferred $546,400 from the county's Recreation Enterprise Fund to cover the clubhouse's deficit. Roughly $89,000 of additional revenue from the facility will be added to the transfer, bringing the total debt service to $635,500.
The transfer is between two enterprise funds and does not affect the general fund.
"When the clubhouse was originally purchased, the intent was that the revenues would pay for the debt service … However, we just haven't been able to generate that much revenue," said Budget Director David Eicholtz. "We'll only be able to do this once, because the recreation fund isn't making enough money to continue this practice."
Commissioners' Vice President Edith J. Patterson (D) asked whether the recreation fund would be adversely affected by the transfer, but Eicholtz said the remaining $260,000 would be adequate, with a continuing revenue stream from fees, to support the fund's roughly $1.4 million annual operating budget.
In the context of struggling enterprise funds, Charles County commissioners' President F. Wayne Cooper (D) brought up the subject of the White Plains golf course, which is currently operating at a $30,000 to $40,000 deficit.
Eicholtz said it is not any one factor that hurts the facilities, though participation and the economy do have an influence.
The budget director suggested one solution could be to budget the debt service in the general fund, which is how some of the recreational parks stay open.
"All of these large complexes that we're operating … are losing [money]. Normally you either raise rates to compensate for the losses … or you make other adjustments without touching the general fund, because the general fund is in trouble now anyway," Cooper said. "This is going to take a lot of thought, a lot of discussion and we need to really start working on it for this next year. It'll be here quick."
