Hamilton’s struggling municipal golf courses need 127 golf carts and City staff are recommending Council finance the cost of $685,673 from the Unallocated Capital Reserve.
Over the next four years, $89,150 will be taken from the Public Works operating budget to return funds to the Capital Reserve. This $356,000 will be combined with $342,900 which the vendor promises as the buyback amount in four years.
Staff say the purchase option will save $20,197 annually compared to the cost of renting golf carts from the vendor.
Staff say the City collects an average of $462,500 in golf cart rental income each year on the three municipal courses.
The golf courses previous contract for golf carts expired at the end of last golf season with a buyback transaction completed.
Councillors will vote on the financing plan during the March 21, 2016 Public Works Committee meeting and ratify that decision at the March 30, 2016 Council meeting.