Before the City of Auburn moved forward with plans to build a new clubhouse and the Copper Falls Restaurant at the Auburn Golf Course several years ago, it paid for a study to show whether it would be financially feasible.

According to the study, it was a go.

But between restaurant sales that have since fallen well below expectations, lousy weather and the economy’s nosedive, it’s safe to say that things haven’t exactly worked out as everybody had expected.

City Finance Director Shelley Coleman conceded as much recently when she approached the City’s Municipal Services Committee about authorizing the transfer of funds to make a $350,000 loan from the City’s cumulative reserve fund to the golf course fund for up to two years.

“The golf course is out of money,” Coleman said. “We’re now in a deficit-operating position. We’re hoping this inter-fund loan will get us through this down season, so by the end of the year we’ll be getting closer to the black.”

In the long term, Coleman added, the City must a find a way to build a fund balance in the golf course. As an enterprise operation, the golf course is supposed to pay for itself without any taxpayer funds.

An inter-fund loan would cover the authorized expenditures for debt service and operating cash during the seasonal down times. The reserve fund has enough money in it from which to transfer $350,000, and no more.

The transfer approved Monday will be repaid with interest.

Councilmember Sue Singer asked what has been done to date to cut costs, and how soon the course can start building a fund balance.

Coleman said the golf course had asked the City for temporary help but the request was turned down. The inter-fund loan is specifically earmarked to trim some of the overhead costs, but it is not sufficient to cover actual costs for utilities.

At this time, the golf course is operating with a bare bones staff of three people and the golf course superintendent, said Councilman Bill Peloza.

“I have to say that I’m not convinced that this is the best thing to do,” Councilmember John Partridge said of the inter-fund loan. “This is an enterprise operation. Do you think a bank would loan us money? I don’t think they would. I don’t think this is just about the down season, I think (the golf course) has been down a lot.

“I am concerned that we only have one option there. I would like to see more options.”