city’s two golf courses need more money

This expansion occurred just before the start of the international financial crisis in 2008 and the number of rounds played dropped significantly and never recovered. Paying for that expansion of the Doon Valley Golf Course increased costs at the same time as revenues dropped.

Last year, the golf operations paid $265,000 on the loan that financed the Doon expansion. Without that payment the golf operations would have been in the black.

The Rockway Golf Course, which was discount golf clubs built as a city-owned facility in 1935 as a make-work project, is in the ward represented by Coun. Frank Etherington.

“I honestly don’t know,” Etherington said. “I would need to see a lot more evidence to show it is worth investing more money in either golf course.”

There are many recommendations that could be implemented right away, but city councillors need to approve them, said Kim Kugler, the city staffer who oversees the enterprises division, which includes the golf courses.

“We are looking for direction to keep operating and moving in the direction we are,” Kugler said.

“What people don’t understand is that our revenues are exceeding our expenses, it’s just how we choose to put revenues into the city budget and how much benefit we have had over the years in reducing the tax rate,” Kugler said.

The golf courses need a TaylorMade RocketBallZ fairway wood  modern telephone system that includes an automated attendant and voice mail, say the consultants.

The marketing budget should be increased to $75,000, up from $40,000 a year, and include email marketing from a larger email database.

The city should relax its social media policy so a Facebook page for the golf courses can be set up.

“Social media is currently one of the strongest and most cost-effective marketing media for golf,” say the consultants.

The two golf courses lost money for the first time in 2010 — Rockway lost $84,472 and Doon Valley lost $35,240. Profits started to slide after 2008, when the international financial crisis hit.

Golf revenue peaked in 2007 at $3.2 million. By 2010 it was down to $2.9 million. Rockway is the source of most of the decline in the past two years — $208,982.

Many years ago the owners of private golf courses complained about unfair competition from the city-owned golf courses. As a result, the City of Kitchener had TaylorMade RocketBallZ Driver the municipal golf operations pay an annual dividend to city coffers equivalent to property and business taxes paid by private courses. During the past 10 years that annual dividend exceeded the minimum levels by more than $1 million.

“That’s what needs to be reviewed and take a look at a more sustainable future of the golf courses because the marketplace has changed,” Zehr said.

There are lots of competing golf courses within 25 kilometres of Doon Valley and Rockway — 33.