PALM COAST — Auditors have given the city finances a high rating in the past, but one problem area has always been the enterprise funds of the city-run tennis center and golf course.
The Palm Coast City Council on Tuesday unanimously voted to amend its fund balance policy, which will eliminate the a minimum level of fund balance required and also support the Palm Coast Tennis Center and the Palm Harbor Golf Club “as needed” from the general fund.
Palm Coast Finance Director Chris Quinn said by having a minimum level required in the operating and nonoperating funds was essentially taking general revenues and "parking them there for no real use."
For the city to meet the current fund balance policy for the Palm Coast Tennis Center and the Palm Harbor Golf Course, the city would transfer about $150,000 of tax revenues that would simply sit in the bank and couldn’t be utilized for other governmental needs, Quinn said.
"That’s really the crux have the current fund balance policy," Quinn said.
The City Council approved the option with a 5-0 vote, but City Councilman Jason DeLorenzo said he was only agreeing to the option "for now."
"I’m going to favor Option 1 for now, but I think — philosophically — we’re getting a whole lot closer to understanding that these are city amenities and probably should be treated like every other city amenity. But I think keeping it under closer scrutiny for a little bit longer is OK."