The Tennessee Centennial Golf Course is pictured above in east Oak Ridge on Thursday, Dec. 10, 2015. (Photo by John Huotari/Oak Ridge Today)
The Oak Ridge City Council on Monday will consider approving $120,000 to continue operating the Tennessee Centennial Golf Course in east Oak Ridge off Edgemoor Road.
The request comes about one year after Council approved, in a 6-1 vote, a $325,000 transfer for operations at the golf course. About $225,000 of that transfer, a cash infusion, was for outstanding accounts payable, including for expenses that included clothing in the pro shop, a management fee, fertilizer, and irrigation costs. Another $100,000 was operational funding for the winter, including maintenance of the greens.
The request is smaller this year, but the golf course is still short of money needed to operate, despite all marketing efforts, Oak Ridge City Manager Mark Watson said in a Wednesday memo to City Council members.
“The slow winter season now requires funding to pay necessary costs and salaries through the winter quarter (January-March 2017),” Watson said.
Most of the $120,000 in funding—or $70,024 of it—would be used for accounts payable. The rest would be used for cash flow and salaries, Watson said.
He said the city’s current contract with Billy Casper Golf says that all golf course expenses are ultimately a city responsibility. The course is owned and operated by the city, and it’s managed by Billy Casper Golf.
Watson said the City Council reviewed the financial stability of Centennial Golf Course last year.
“Efforts were coordinated with the City Council’s Budget and Finance Committee to examine a path forward to have the golf course pay for annual maintenance and operational costs,” Watson said. “Due to declining markets for golf, the city’s contractor (Billy Casper Golf) was directed to enhance marketing and regain past market share over a two-year period.”
There has been some limited growth at the golf course in the past year, Watson said, but revenues have not exceeded expenses. The course has had an excessively long sporting year, yielding more rounds played, especially with the time-of-day pricing used by Billy Casper Golf, Watson said.
He said the Budget and Finance Committee and Finance Director Janice McGinnis continue to review the cash flow at the course, and he has told Billy Casper Golf to provide an analysis of a “price floor” for golf as the spring season approaches.
“In the coming budget year, the city manager will budget for an allocation to be available for use for keeping payables and expenses current until a sufficient fund balance is achieved,” Watson said.
The previous transfer, approved by Council in December 2015, was the first non-debt related transfer from the city’s General Fund to the Golf Course Fund since the golf course was built. In December 2015, officials said the city still owes about $3 million in debt-related bond payments on the golf course, and it was then expected to be paid off in five years.
Oak Ridge City Council member Trina Baughn cast the only vote against the operating transfer in 2015. All six of the other City Council members voted “yes.†It’s not clear how the new Council might vote. Baughn is no longer on the City Council because she did not seek re-election in November. Neither did former City Council member Charlie Hensley. Council has two new members elected in November: Jim Dodson and Hans Vogel.
The golf course, one of two in the city, remains controversial two decades after it was built and opened in 1996, part of the Parcel A development in east Oak Ridge. Some critics raise questions about whether the surrounding residential development has been significant enough to justify building the golf course and continue paying debt on it. But current city officials point out that the decision to build the course was made under a former City Council and former city manager.
There has been debate about whether the golf course is profitable or sustainable, and City Council members raised questions last year about whether they would be asked for more money later.
During the 2015 meeting, Baughn advocated for selling the golf course. She called it “an elitist recreational facility that most of the community can’t afford.”
But other city officials—including Watson, Rick Chinn, and Council members Chuck Hope and Ellen Smith—suggested that selling the golf course is not a viable option.
Officials said the city still owes $3 million on Centennial and would probably get a fraction of that if the course were sold, citing another East Tennessee course that sold for less than $1 million.
The clubhouse at Tennessee Centennial Golf Course is pictured above on Thursday, Dec. 10, 2015. (Photo by John Huotari/Oak Ridge Today)
Most of the residents who spoke at the 2015 meeting seemed to be in favor of the operational transfer, pointing out that the golf course is another recreational facility. Other recreational facilities in Oak Ridge don’t make money, even ones that do charge fees, they said.
Hensley said the golf course needs to make reasonable money, but it doesn’t have to make money. He suggested it’s an important asset to help attract new residents and young families.
The City Council meeting starts at 7 p.m. Monday, January 9, in the Oak Ridge Municipal Building Courtroom at 200 South Tulane Avenue. See the agenda here. The agenda includes the golf course resolution and additional information.
More information will be added as it becomes available.
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Jeanne Hicks Powers says
So shocking and totally unexpected! 😉
Sam Hopwood says
Pouring money into a bottomless money pit is something that OR is very good at. Press on City Council…
MIKE STEVENS says
I’m pretty much a life time Oak Ridger. At 70 I still play golf and am a member at Centennial. I’m obviously not an elitist, just a taxpayer. I don’t have any children or grandchildren in our school system but I still support it with my tax money. I haven’t been to the outdoor pool in 50 years but I still support it and all of the other programs of the city supported by my tax dollars. We don’t get to pick and choose what programs that we want our tax money to support. Think about it and a happy new year to all.
Matt Bailey says
Well said Mike.
Sam Hopwood says
I’ve thought about it and the thought comes to mind “if you find yourself in a hole, stop digging.” Have a good one. 🙂
Matt Bailey says
You mean like that big hole we fill with water every year across from the high school? Or the one with water at the civic center that’s been closed due to poor water quality and needs a major financial overhaul? Which council already approved by the way.
Sam Hopwood says
Big difference Matt, and you know it, but not to worry. This will breeze through city council easily. Meanwhile, a new state of the art preschool that could serve several hundred more students still seems to be on the back burner. But hey, the preschool primarily serves low income and poverty level children. We have our priorities in order!
MIKE STEVENS says
I agree with you whole heartedly SAM about the preschool. When I asked council members last spring, they wanted to wait until after the election and the new construction beginning on Main Street. The Senior Center move and the eighth lane seem to be a higher priority to many. I personally feel that the new pre-school should be our number one priority. Just my opinion
Tracy Powers says
And the seniors believe a brand new, state of the art senior citizen center is owed them.
I see they are moving General Sessions court to the old senior center, but according to the seniors it’s not a safe building.
Maybe we should ask what we can do for Oak Ridge as opposed to what Oak Ridge can do for us.
Matt Bailey says
Contractually, what few choices does council have? Selling it (how many years might that take) still leaves us $2 million in the whole and maybe still paying off the management contract. Do you have a solid financial proposal?
We spend a boatload on both pools as a benefit to citizens, as well.
The 8th lane allows us to make money and reinvest in other areas.
Once again Sam, I’ve never seen you present a solid proposal balancing costs vs community enhancements. But you sure do like to complain about city council and their decisions. They are looking for solutions. You got one?
Joe Wick says
Invest in the future, Disc Golf is growing by great numbers. Good for the whole family! Look at the stats… Invest in the 2 Oak Ridge already has.
Philip W Nipper says
This city recreational resource needs to be expertly managed and well maintained. Its one thing to have a sub par course with less than adequate amenities that looses money. Its a different story if a course is top notch and has great amenities that still does not turn a profit. In an effort to save tax payer money and improve the bottom line, I would suggest looking at different management and maintenance strategies and improve on marketing schemes. Then once its paid off, sell it!
Matt Bailey says
Not disagreeing with your comment but hasn’t city staff done this? Did they overlook any strategies previously? Are there any marketing schemes that are successful elsewhere that haven’t been explored? I’m not a golfer but if you have ideas, use your three minutes Monday night to present them. I’m sure they are open to anything re the golf course.
Philip W Nipper says
Thanks Matt. No, I am no golfer either. Just seems to me that there are always alternatives that might not have been explored yet such as letting city staff do more and the contracted folks do less, run more promotions, offer free golf, get the Chamber more involved with promotions and give aways / packages etc. How do we get more golfers to play here and less elsewhere? That should be the mantra of the management team. Personally, I don’t think it will ever turn a profit. The best we can hope for is reducing the taxpayer input each year until we decide to be rid of it. Maybe all of these ideas and more have already been tried or discussed and I am just urinating up a rope….
Matt Bailey says
In today’s world, I understand it likely won’t turn a profit. Should it? I don’t know. Likely the 2 pools don’t either, or the ballparks or maybe even Blankenship field. Which is maybe why the museum property and the 8th lane are so vitally important to the senior center and the pre school which are both needed. Vicious circle ain’t it? And we haven’t even discussed how to promote the national park yet. Even some DOE visitors don’t know of this yet.