During the 2004 audit by the City of Westminster's
independent auditors, the auditors expressed concerns about the ability of the
Westminster Economic Development Fund (WEDA) and the Golf Course Fund to pay
back some of the interfund borrowings that have occurred over the
years.
- The golf courses, Heritage at Westmoor (which had
a original Bond issued for over $6 MILLION) and Legacy Ridge ( I haven't been
able to determine what the original bond amount was), which are both owned and
run by the City of Westminster, do not make enough money to cover their
operating expenses, much less payment on the debt. Westminster budgeted
an additional $880,000, OUT OF TAX REVENUES, in 2005 to help the golf courses
maintain apositive cash flow. Westminster already
has one public course, Hyland Hills, and one private course, The Ranch. With
the addition of the planned golf course in Lafayette, THERE WILL BE 12
GOLFCOURSES IN THE VICINITY. Since the Westminster owned golf courses
cannot bring in enough revenue to cover their operating costs, there are
obviously too many golf course in the area. The City of Westminster, SHOULD
CONSIDER SELLING one or both of the City golf courses to pay off their debt,
NOT WRITE OFF THE DEBT.
- Due to the auditors concern about paying off the
WEDA Fund and The Golf Course Fund debt, The City Council is proposing
TO WRITE OFF $6,164,814 plus the accrued 2005 interest of
taxpayer money. The money for the Golf Course Fund appears to have been
borrowed from the General, Utility, Westminster Housing Authority (WHA), the
General Capital Improvement, and the Reserve Funds. The money for WEDA appears
to have been borrowed from the Utility, General, Capital Improvement and Reserve
Funds.
- The City of Westminster says that they are going
to leave the WEDA URA, The Westminster Center East and Mandalay plus some of the
golf course obligations on the books as they "THINK" that at some time
they may generate enough revenue to meet the obligation? My question:
What assumption is this based upon?
- NOW wouldn't all of us like to be able
to create debt and when it couldn't be paid because you were overextended ----
JUST WRITE IT OFF?
- WE SHOULDN'T BE WRITING THIS DEBT OFF.
IT IS THE TAXPAYER'S MONEY THAT WAS BORROWED FROM THESE FUNDS. They
could possibly write off the interest since it was an interfund transfer, but
they should NOT write off the basic debt.
- At the Westminster City Council
Meeting on August 22, 2005, Butch Hicks stated that the golf courses were
$94,000 above expenses. I Emailed Councillor Hicks and asked him if that was
because of the additional $880,000 that was budgeted for the Golf Courses, but
have not had a reply. I wonder what fund the additional money was "transferred"
from.