Danbury could make a cash advance of up to $150,000 to the Richter Park Authority. The line of credit is meant to address their temporary cash flow needs during the off season.
Danbury Finance Director David St Hilaire says the poor weather conditions shortened this past season and it negatively affected their reserve cash levels. The City Council approved a $1.5 million refinancing loan for 15 years at a 2.5 percent interest rate in November 2015. Another $600,000 was approved last year for the driving range project. St Hilaire says the range, completed in April, is bringing in residual benefits for Richter Park operations.
The current loan balance is $1.7 million. All payments have been made on time. St Hilaire is recommending an automatic renewal of the $150,000 line of credit annually, under the condition that any amounts borrowed during the fiscal year be repaid by the end of the same fiscal year. Any outstanding balance on the line of credit will accrue interest at the 2.5 percent rate.
Out-of-town player green fees, a heavy revenue driver, have dropped due to competition. In order to address cash flow issues during the winter months, the Richter Park Authority has made changes to their rate structure. They've also streamlined. There used to be a general manager and a head pro, but the GM position was eliminated. Those duties are now handled by the executive committee.
City Councilman Duane Perkins expressed concerns because when the Council was vetting the loan amount for building the driving range, there were questions about whether funding would be adequate. There were cost overruns of about $20,000.
