How Are We Doing?
As our members are aware our Club has experienced a tough couple of years through 2021 and 2022.
In 2021 during the severe Covid lockdown period our members had to endure the forced exclusion of somewhere in the order of 70% of our members from the club for a continuous period of 120 days when the Shellharbour LGA was deemed part of Greater Metropolitan Sydney.
In 2022 La Nina served up a relentless 249 day period (21/2/22 to 29/10/22) during which only 68 days saw some form of golf played on the course. Those 68 rounds were all competition only (no social golf), and all bar 6 of those days were walking only, and generally on a restricted, shortened course in horrid muddy conditions.
This was extremely tough on our members, tough on our ground staff, and certainly very, very tough on our Club. Membership renewals fell due in the midst of this prolonged wet period so membership renewals plummeted with the loss of 130 of our then 565 members. I am pleased to be able to report that we have quickly rebuilt the membership base and are now back to a tad over 500.
Many Clubs would have struggled to survive such a prolonged and serious budgetary hit. It is testament to both past and present Boards who had managed to slowly build the cash reserves that carried us through this sustained period of dramatically reduced revenue, while overheads have, with inflation rampant, grown substantially. In this regard we are a relatively small club, without an independent commercial club facility with “non golf” related revenue streams (poker machines, bar, restaurant etc) to support their operations. In our case if there is no golf there is no revenue. All that said we remain in a very healthy, albeit poorer financial position then where we were prior to these concurrent disasters.
Additionally, there is significant work to be done, such as rebuilding the 16th retaining wall, impending machinery replacement, a new 4th green and practice green to be built which are among the high priorities ahead in a long list of investment possibilities.
Member Fees 2023/24
Considering the above circumstances the Board of Directors determined at its February meeting to increase the membership fee from $620 to $680 for the 2023/24 membership year. I sincerely hope that our members will understand the necessity for the increase which amounts to an extra $1.15 per week. It should also be appreciated that last year despite the Covid impacts the Board adjusted the annual fees a little less than inflation. This latest increase is modestly above the annual inflation rate.
For our loyal senior members (those who have reached 80 years of age and have been continuous members of the club for 10 or more years), the Board has again approved the $200 loyalty rebate. This rebate system has been assessed to be cost neutral or better, making the decision for some of our older golfers a little easier as to whether they renew for another year, particularly those with health problems, or carer responsibilities impacting their opportunities to continue playing.
It should also be understood that the decision on whether to grant this loyalty rebate is a matter for each Board to consider annually, and is determined having regard to potential cost/benefit assessment and affordability.
Masterplan
While the Masterplan is and will most likely be an evolving document, the elements that were put to the membership in consultation sessions in Nov/Dec 2022 are now being developed by the club’s consultants into a staged development application. You may have seen the surveyors on course in recent weeks or the Geotechnical consultant. Others will be on course at various points in time over coming months as they pull together the professional documentation required by Council for DA approval. An approved DA will hopefully put us in good stead to apply successfully for grant funding for some of the more costly elements of that DA. An approved “Staged DA” will have no expiry, so works therein can be implemented at any time in the future as and when funds are available, whether that is from internal or external sources.
Solar Panels
The Club’s solar panels have recently been replaced on the clubhouse roof by Solarblu under insurance. The Club is also investigating the merits of additional solar panels for other club buildings and battery power to enable us to go off grid. The possibility of a community battery will also be investigated.
Improving Future Financial Security
The Club’s future financial security and its ability to survive impacts such as those incurred in 2021 and 2022 can be greatly enhanced by growing the membership base, minimizing overheads, and finding new and/or improved revenue streams. The decision to end the lease of the small area of land on the 4th hole from Club Jamberoo (i.e. the 4th green and practice green area) is in large part driven by the need to reduce overheads. On the income side we have some excellent non golf investments including Footgolf, the Return and Earn recycling machine, and two rental properties. If we can go off grid with a solar battery this would be a significant cost saver. If we can generate surplus energy to contribute to a community battery that could be another income earner, all of which would help in this equation.
Phil Hahn
President
25 March 2023
Pleased to see foresight to have future plan documented. I recognise it’s a requirement for any DA approval/s. The club team are doing a great job in ensuring the club is in a strong position and I’m sure will continue to do what is necessary to place the club in a that position going forward. Excellent work.
If the club is looking at income, why are we excluding members from playing competition and giving Pennants competitions the exclusive use of the course on competition days? Surely the 5% of members who play Pennants don’t have more right to the course than the other 95%, especially when all those comp fees are lost with no income from Pennants. Regards Bruce Byers
The Mens Pennants are played on Sunday mornings but I note that in the C Pennant matches were played home and away and only took about a half hour of tee times allowing for valuable social club play not to be too affected.
This is the model that both GolfNSW/Illawarra (the mens body) and Womens Golf Illawarra should be working towards in my opinion.
Having said that it must be noted that the current practice is what has been done since the inception of inter-clubplay in the 1920’s.
I note and understand the Board’s decision to end the lease of the 4th green area for financial reasons. However, there is an alternative that would reduce the cost to the club and preserve our usage of the current 4th green and putting green area. Members may not be aware, but the retaining wall supporting the bowling green adjacent to our carpark encroaches onto our property by about one meter. Why doesn’t the Board approach the BC and seek rent from them for the use of our land and these payments could be offset against the cost of our 4th green lease? If the BC doesn’t want to pay for the use of our land, then tell them to move their retaining wall onto their own property! This of course would give us a larger carpark.