Agenda item

This report will be sent as a supplementary item on Friday 19 July 2013.

The Executive Director Resources and Support Services introduced a report outlining the financial position at Keele Golf Course. At the Committee’s meeting on 20 May 2013 there had been a Member suggestion that the junior rate for players should be applicable to under 18s rather than to under 16s. This had been approved by Cabinet in May and was now in place at the course.

There had been a net cost to the Council of just over £13,000 to keep the course open, with some one off costs incurred. The figures had suffered from the uncertainty at the course over the previous twelve to eighteen months, and income was slightly down. However, the country was experiencing a spell of good weather and it was hoped the July figures would show an improvement. Nearly £13,000 had been taken in the first two weeks of July and good figures for the month were expected.

The need for an annual golf course report was questioned by Members. This was a full report from the Sports Turf Research Institute which the Council had used for many years. It was a nationally recognised report which made recommendations based on a very close inspection of the golf course. The results of the report gave confidence that the course was being maintained properly.

A Member expressed concern that the Council was losing money each month from subsidising the course and questioned the Leader as to when the Council’s support for the course would cease. The Leader responded that at its May meeting Cabinet had approved that officers be instructed to proceed with a formal, competitive, two-stage marketing process with the aim of securing a tenant. There had been three expressions of interest which were being considered now the period for submitting expressions of interest had closed, and the aim was to have a tenant by the winter. The benefit of the golf course report was that it informed the expressions of interest of the areas that required attention.

Members questioned the degree of variable cost associated with grounds maintenance and operational costs. The Executive Director, Operational Services advised that the quality of the course would be affected by a decrease in income for grounds maintenance and that the costs for this were predominantly fixed, although there may be a small increase in expenditure if there was significant use of the course. With regard to operational costs, the cost of staffing the golf shop and running the marketing of the course was again predominantly fixed. Greater demand and increased use of the course should reduce the Council’s subsidy. There would be no costs incurred by the Council when a when a tenant was secured and the interim provider no longer needed. Glendale Managed Services had priced for a fixed term to manage the course and were fully aware that it was an interim arrangement.

There were positive effects of the Council intervening in the running of the course, most significantly a 400% increase in the sale of season tickets. Although this was a small amount financially, it illustrated that a lot of people were being attracted back.

The Leader noted golf course closures in Cheshire and assured the Committee that the Portfolio Holder for Finance and Resources would be driving any offer from the expressions of interest to be competitive in the market. There would be meetings with the potential tenants where they would be questioned on what they could provide that was different. The intention was to have a course that was self-generating and would look after itself, with no risk of being handed back to the Council in a few years time.

Members requested that further detailed financial reports continue to be submitted to the Committee.

RESOLVED:              (a) That the information be received.

(b) That further financial reports be received by the Committee.