Beloit City Council is taking significant steps to address the financial challenges facing the Kruger Haskell Golf Course, which has been a city-owned facility since 1927. During a recent meeting, city officials discussed the golf course's ongoing losses and the need for a new management strategy to ensure its sustainability.
The golf course operates as an enterprise fund, which means it is expected to cover its own costs. However, financial reports indicate that the course has incurred losses ranging from $10,000 to $50,000 annually over the past five years, with total losses—including salaries and benefits—estimated between $135,000 and $217,000. To mitigate these losses, the city has been providing an annual subsidy of $50,000 from the general fund.
In response to these financial concerns, the city issued a request for proposals (RFP) to find a management firm that could help reduce or eliminate these subsidies while improving revenue. The RFP outlined four main goals: reducing cash and personnel subsidies, achieving revenue growth with minimal rate increases, limiting expenditures through effective management, and increasing sales through marketing efforts.
Two proposals were received: one from Oliphant Golf Management and another from Landscapes Golf Management. Oliphant proposed an annual management fee of $78,000 with an incentive structure based on net operating income, while Landscapes Golf Management offered a lower fee of $72,000, with a potential increase in two years. Both proposals, however, raised concerns among the golf committee and residents regarding their ability to maintain course quality and control costs.
Residents expressed satisfaction with the current management and voiced fears that private management might prioritize profit over course maintenance. The golf committee echoed these sentiments, noting that while Landscapes Golf Management's proposal was more detailed, it still lacked a clear plan to reduce subsidies.
As the city moves forward, the council is expected to make a decision on the management contract by December 2, 2024. This decision will be crucial in shaping the future of the Kruger Haskell Golf Course and ensuring it remains a valued community asset.