Councilman Steve DeBrum wants to eliminate a budget handicap - the status of a $1.4 million “loan” to the Manteca Golf Course fund.

“We need to take the bull by the horns once and for all as a council and decide whether this is a loan that is to be paid back or not,” DeBrum said of the $1.4 million during a budget workshop Monday.

The $1.4 million was paid from the now distressed general fund over a period of about 10 years to help the golf course make bond payments and cover shortfalls in revenue. It has been referenced in previous budgets as well as this year’s spending plan. But unlike other inter-account borrowing the city makes, there is no mention of payback time or even interest.

DeBrum’s push for clarifying the $1.4 million “loan” comes as the golf course is showing it can stand on its own thanks to increased green frees, the elimination of one long-term debt and the final payment being made in 2013 on its last remaining long-term obligation. It also is happening as the city prepares to grapple with the 2012-13 budget and how to absorb a $1.4 million hit in the form of the loss of redevelopment agency funds to cover general fund staffing expenses. City leaders also are anxious to start adding back manpower to the police force. The $1.4 million, as an example, represents the annual compensation and related costs for a police officer for one year over the course of a decade.

Previous councils have avoided addressing the “loan” for fear of opening Pandora’s Box. For years, the golf course and its operations was among one of the most contentious and divisive issues in Manteca politics. That hasn’t been the case for at least 10 years.

The “loan” is one of two general fund decisions that the council may address in the coming months regarding the general fund and the golf enterprise account. Enterprise accounts  refer to undertakings by the city that include water, sewer and garbage where users pick up the tab. State law also prohibits enterprise funds from subsidizing the general fund although the reverse is legal.

The council for a number of years has earmarked $155,000 in general fund money annually to the golf account for “the recreational benefits” the course provides for Manteca. In the past the $155,000 annual payment was considered a way for the city was underwriting free youth play through the high schools as well as discounted rounds for senior citizens.

Councilman John Harris noted the $155,000 also covers reduced fees for active military.

The money is in this year’s budget. It is the same spending plan that did not have the annual $200,000 general fund subsidy for the recreation programs. That’s because the recreation programs were operated well enough with fees set accordingly to cover all costs.

City Manager Karen McLaughlin said staff would be seeking direction from the council as to whether the $155,000 golf subsidy and $200,000 recreation subsidy should be a part of the 2012-13 municipal budget.

Mayor Willie Weatherford framed the question as one of recreation value. He noted the city general fund earmarks about $100,000 a year for the upkeep of the Northgate Park softball playing fields that aren’t recouped in fees charged for the use of fields for league and youth play. He said that is similar to the situation with the golf course.

At the same time, the general fund doesn’t subsidize the Big League Dreams sports complex operations.

The golf course is a hybrid between a 100 percent city-run operations and a city facility that is leased and turned over lock, stock and barrel to a private concern to operate and maintain.

The golf course has a pro that runs the course for play while it maintains its own staff through the enterprise fund to maintain the course.

The golf course for the fiscal year ending June 30 is expected to generate $1,142,230 from rent and the share of concessions from two private sector operators that run the course and its food service operations - golf pro Alan Thomas and restaurateur Frank Guinta. That’s up $25,000 over last fiscal year.

The $1,142,230 in revenue is against $1,056,615 in expenditures. Take the $155,000 that the city shifts from the general fund to cover reduced or free play and the course would be operating with just about a $70,000 deficit.