9th July 2024
President’s Half Yearly Report
As we approach the annual subscription renewal, I am pleased to report that our Club’s financial operations are robust. Annual subscriptions will increase by 3.4%, which reflects Brisbane’s CPI. The popularity of golf, as evidenced by the high demand for tee times, has aided the continued strengthening of the Club’s financial position.
Golf Courses/Clubs, by nature, are capital intensive and are a high fixed cost business, a fact often referenced in financial communications. More recently, our Treasurer, Paul Morris, shared insights into the Club’s 10-year capital requirements, which exceed $8m. Although this is a big figure, in many ways, it isn’t surprising mindful of the obligatory and aspirational capital investment needed to ensure the Club remains relevant and capable of delivering its key products and services into the future. These realities and the importance of a strong balance sheet have been a long-held focus of the board over the past decade, and the stewardship of Treasurers over this time has proven invaluable in ensuring short-medium term capital funding provisions exist.
Our longer-term cash flow projections indicate that some “hard” decisions will be necessary to maintain and improve our assets. However, this is not a problem for today, but we are committed to keeping the conversation active. This will form part of the constitutional review currently underway, a significant undertaking that will become an important piece of business for the Club in 2025.
Frustratingly, I share that we are still negotiating a final solution and a start date for replacing the retaining wall on Hole 8. Despite our ongoing and exhaustive efforts to get this work underway, the challenges remain outside of the Club’s control. Ongoing regular intervention by regulators and some unsatisfactory delays in the tendering process are primarily the reasons for the delays. The Club has been advised that the project costs have increased significantly, which fortunately is not our responsibility and is one of the few upshots to the situation. I can confirm that oversight of this project is at the highest levels within the Department of Sport & Recreation, and the Club’s frustration has been made well known. The delays have also caused knock-on challenges with several course projects, including addressing the replacement of Green 7.
The winter months have again highlighted Green 7’s poor health. Although it would create some inconvenience, we have decided to evaluate rebuilding this green while Green 8 is replaced.
In the coming weeks, the construction of seven (7) new tee blocks located on holes 2,3,7,18,20 & 27 will commence. Once established, the new tee blocks will allow us to relocate play and come back and refurbish the existing tee areas on these holes. The volume of play on our golf course is “high,” and shade and low airflow adversely impact many of our tee areas. We undertake vegetation management where possible, but this is often a complex and restricted task, so our best option is to increase the size and volume of our tee areas, allowing for better rotation of tee markers.
The long-awaited refurbishment of the Clubhouse’s lower level is also gaining momentum, and we are putting together the final plans. These plans will be shared and available for review in the coming months. A Project Manager will be appointed to oversee the tender and delivery process. The project will likely need to be staged, with final pricing influencing this decision. This is an exciting project for the Club and will address many aged elements of the Clubhouse and create some exciting new spaces.
Enjoy your golf, and as always, feel free to contact me at any time to discuss any matters or issues relating to the Club.
Rodney Rhodes
President
