President’s Update – September

The Club’s financial year ends 30 September and the Board has now considered its budget for next year along with the setting of subscription fees and other fees and charges. Perth’s CPI for the past year is 4%. The Budget will seek to keep costs for the next year at or below CPI although some areas are expected to increase above CPI, including – loan borrowing/servicing 30% increase, electricity 15% increase, insurance costs 20%, chemicals 10% and utility expenses 7% to name a few. The Board has endeavoured to restrict increases to members subscriptions in line with CPI but also taking into consideration additional unavoidable costs for the following year and the result is members fees will increase by 5% in 2024/25. Comp fees will increase by 4% and there is no increase to Private Cart User Trail Fees. Subscription revenue raises approximately $1m out of the Club’s total revenue/operating budget of $4m. Accordingly, efforts will be made to increase revenues in other profit centres; public green fees, beverage/food, merchandise, golf services including the driving range and functions. All members will receive their individual subscription invoices for the 2024/25 year in the near future. The Board is confident that the new budget will maintain and improve the operations of the Bunbury Golf Club as we strive to contain costs and improve efficiencies wherever possible. In any comparison with other golf courses of similar quality, our member Club fees remain competitive and good value for the standard of our facilities and the excellent golf course we all enjoy.

 

As part of the Board’s budget discussions further work is underway to look to the future costs and revenue needs facing the Club over the next 10 years. If we are to maintain the condition of our facilities;  keep the golf course in top condition, extend our pathway network, expand the electric buggy fleet and improve/expand our golf services, then we as a Club need to understand what the future challenges are. To this end the Board is preparing a 10 Year Financial Plan and when completed a Members Forum/s will be held to discuss the challenges and opportunities that arise from this exercise. Members input will be key to reaching a common understanding and setting a clear direction to guide the Club’s growth and development. The BGC Development Plan 2023 which was completed last year will be a  key reference for the Club’s financial projections. The Members Forum will be open to all members and all views will be welcome.

 

Many of you will have noticed the arrival of the new range ball dispenser and ball washer that is located next to the Pro Shop facing the 1st tee. There are four options that the dispenser provides for members rather than the previous 3 option selection (large-100, mid-70, small- 40 ) – (i) 25 balls @ $4.50; (ii) 50 balls @ $7.50; (iii) 75 balls @ $11.50 and (iv) 100 balls @ $15. The cost for visitors/public is a bit more so remember to use your members card to get the discount. There is also a member only introductory offer to provide additional cost savings for anyone interested. The benefits of automation with the ball dispenser are- 

• Quicker service (no waiting in pro shop to get served)
• Cleaner practice balls (sorting and keeping stock in better condition)
• Extra revenue from the public (open to the public/members outside of Pro shop opening hours)
• Free up time for staff to answer phone, serve clients – merchandise, assist members etc.
• Costs for the purchase of the dispenser/ball washer will be fully recovered in 2 years through additional revenue generated
• In time, the dispenser/ball washer will be relocated to the driving range as part of plans to upgrade the practice area – lighting, weather protection, etc.