City gives Powell Golf Club $55,000

Posted 7/9/09

The Powell Golf Club will receive $55,000 from the city of Powell's 2009-10 fiscal year budget, which took effect on July 1.

In the past, the city has given the golf course $30,000, which goes toward payments for equipment, such as mowers and …

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City gives Powell Golf Club $55,000

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The Powell Golf Club will receive $55,000 from the city of Powell's 2009-10 fiscal year budget, which took effect on July 1.In the past, the city has given the golf course $30,000, which goes toward payments for equipment, such as mowers and golf carts. This year, the golf club asked for an additional $25,000 — of that, $13,000 will go toward battery repairs and maintenance for the club's 45-cart fleet and the remaining $12,000 is earmarked for upgrading kitchen equipment for sufficient fire suppression. While the golf club isn't responsible for operating the kitchen, it must maintain the building.“We don't ask the city for money toward operating costs,” said Gary Shampeny, the golf club manager. “It goes strictly toward capital projects.”Though it's not one of the most costly budget items of the city budget, it is one of the most contested among the council.“In the time I've been on the council, (the golf course) is always asking for money … it's an entity out there and it needs to work its way to be self-sufficient,” said Councilman Jim Hillberry.The operating budget for the golf club is around $400,000 each year, Shampeny said. The city's contribution typically accounts for about 7 to 10 percent of the golf club's overall budget. This year, with the additional funding, it's about 14 percent.“It really hasn't been self-sufficient in recent years,” Shampeny said.He said through the years, the golf club has been funded through a joint effort of city money, past grant money and golf club revenue.The combination of funding has caused a bit of an identity crisis for the golf course in the past, Shampeny said.When he began with the golf club, there were three signs —Powell Golf Club, Powell Country Club and Powell Municipal Golf Course.Which is it?“We're a daily-fee golf club that sells annual passes,” Shampeny said.Not a country club for members-only, and not a municipal-operated golf course, either, he said.The city owns the clubhouse and the original nine golf holes. The golf club owns the remaining nine holes. Though the club is partially city-owned, it is not city-operated.Mayor Scott Mangold asked the golf club board whether rates could be modified so more people could afford to golf so “we're not using city tax dollars to support a few.”Daily rates through Labor Day are $35 on Mondays, $39 for nine holes and $49 for 18 holes Tuesdays through Fridays. Weekend and holiday rates are $49 for nine holes and $59 for 18 holes. Rates include cart and range privileges. Discounts apply for juniors and college students.Grounds Committee member Greg Toland told the council that rate decreases would cut revenues, meaning more people would need to golf to make up the difference. The club has found in its funding model that fewer people paying more results in better profits than more people paying less.Rates are based on the amount of people in the area who golf, the course's quality, the level of competition in the area and the cost to provide the product — rounds of golf, Shampeny said.“Are we making money? Barely,” he said.Powell Golf Club Board President Mike Foulger said the fee structure helps keep the golf course solvent.“We're trying to provide a nice course for the community and the area,” he said.Councilmen Josh Shorb and Hillberry voted against funding the golf course at $55,000. Shorb noted that he was concerned about the overall city budget and doesn't oppose the golf course.“It's not that I don't support it,” he said. “I'm worried about our budget ... we have to take care of core services now.”Other councilmen voiced support for the golf club.“They do a terrific job with very little money from us,” said Councilman Floyd Young.Mangold suggested that the council meet with the golf club board after its season.“Instead of us doing this once a year, we should meet after the season and get a plan together,” he said. “I'd like to be more in the loop of what's going on out there.”The golf club appreciates the city support, Shampeny and Foulger said.Shampeny added that in some states, municipalities don't support golf courses as a recreational facility.“I'm very thankful for what the city has done for the facility and what they continue to do,” he said.

The Powell Golf Club will receive $55,000 from the city of Powell's 2009-10 fiscal year budget, which took effect on July 1.

In the past, the city has given the golf course $30,000, which goes toward payments for equipment, such as mowers and golf carts. This year, the golf club asked for an additional $25,000 — of that, $13,000 will go toward battery repairs and maintenance for the club's 45-cart fleet and the remaining $12,000 is earmarked for upgrading kitchen equipment for sufficient fire suppression. While the golf club isn't responsible for operating the kitchen, it must maintain the building.

“We don't ask the city for money toward operating costs,” said Gary Shampeny, the golf club manager. “It goes strictly toward capital projects.”

Though it's not one of the most costly budget items of the city budget, it is one of the most contested among the council.

“In the time I've been on the council, (the golf course) is always asking for money … it's an entity out there and it needs to work its way to be self-sufficient,” said Councilman Jim Hillberry.

The operating budget for the golf club is around $400,000 each year, Shampeny said. The city's contribution typically accounts for about 7 to 10 percent of the golf club's overall budget. This year, with the additional funding, it's about 14 percent.

“It really hasn't been self-sufficient in recent years,” Shampeny said.

He said through the years, the golf club has been funded through a joint effort of city money, past grant money and golf club revenue.

The combination of funding has caused a bit of an identity crisis for the golf course in the past, Shampeny said.

When he began with the golf club, there were three signs —Powell Golf Club, Powell Country Club and Powell Municipal Golf Course.

Which is it?

“We're a daily-fee golf club that sells annual passes,” Shampeny said.

Not a country club for members-only, and not a municipal-operated golf course, either, he said.

The city owns the clubhouse and the original nine golf holes. The golf club owns the remaining nine holes. Though the club is partially city-owned, it is not city-operated.

Mayor Scott Mangold asked the golf club board whether rates could be modified so more people could afford to golf so “we're not using city tax dollars to support a few.”

Daily rates through Labor Day are $35 on Mondays, $39 for nine holes and $49 for 18 holes Tuesdays through Fridays. Weekend and holiday rates are $49 for nine holes and $59 for 18 holes. Rates include cart and range privileges. Discounts apply for juniors and college students.

Grounds Committee member Greg Toland told the council that rate decreases would cut revenues, meaning more people would need to golf to make up the difference.

The club has found in its funding model that fewer people paying more results in better profits than more people paying less.

Rates are based on the amount of people in the area who golf, the course's quality, the level of competition in the area and the cost to provide the product — rounds of golf, Shampeny said.

“Are we making money? Barely,” he said.

Powell Golf Club Board President Mike Foulger said the fee structure helps keep the golf course solvent.

“We're trying to provide a nice course for the community and the area,” he said.

Councilmen Josh Shorb and Hillberry voted against funding the golf course at $55,000. Shorb noted that he was concerned about the overall city budget and doesn't oppose the golf course.

“It's not that I don't support it,” he said. “I'm worried about our budget ... we have to take care of core services now.”

Other councilmen voiced support for the golf club.

“They do a terrific job with very little money from us,” said Councilman Floyd Young.

Mangold suggested that the council meet with the golf club board after its season.

“Instead of us doing this once a year, we should meet after the season and get a plan together,” he said. “I'd like to be more in the loop of what's going on out there.”

The golf club appreciates the city support, Shampeny and Foulger said.

Shampeny added that in some states, municipalities don't support golf courses as a recreational facility.

“I'm very thankful for what the city has done for the facility and what they continue to do,” he said.

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