Council Defeats Motion To Cease Manitouwadge Clubhouse Operations And Their Growing Debt
MANITOUWADGE, ON – At the September 12th Regular Council Meeting Golf Clubhouse Acting Manager Margaret Hartling presented a report to council which included details of the Clubhouse’s current over budget situation (i.e. in debt) and recommendations on how to avoid the Clubhouse going further into debt which could result in increases in residents’ taxes.
Extracts from Township of Manitouwadge Treasurer and Acting Clubhouse Manager Margaret Hartling’s report to council dated September 11th 2012 and presented at the regular council meeting of September 12th, 2012 (bold, italicized or underlined items have been highlighted this way by the Editor):
“I have been monitoring the YTD for these operations since I took on the role of Acting Manager and need to make some recommendations to Council regarding the operations of this facility for the balance of the season. There are long periods of time when there are little to no customers.
“[below] you will find a spreadsheet showing the YTD for 2012 along with the budget. As you can see we are currently over budget $803.00 and we are continuing to accrue expenses (salaries, food, hydro, propane, etc). I have added a column showing projected future revenues & expenses to keep the operations open to the end of September. The clubhouse is usually open until mid-October. A point to note is that I have calculated estimates for hydro, propane etc. to the end of the year. As you can see I am projecting a net loss of the clubhouse operations of $37,595.00 this is a difference of $9,197.00 or approximately 33% over budget.
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Staff has been advised that there are to be no more purchasing of supplies as the end of season is near. This does not include basic supplies such as bread, eggs, etc. We will not purchase any large food orders or additional liquor for this season.”
Hartling’s report goes on to provide estimated financial implications:
“The financial implications are an estimated budget overrun in excess of $9,000.00 with closure at the end of September. That figure will increase if operations were to continue to mid-October.
“Should Council wish to continue to offer a fully stocked clubhouse (food & liquor) until the end of the season the budget overrun will increase.”
The report also listed possible courses of action that could be taken, though unlike typical managerial reports there was no written recommendation included:
- Close clubhouse for the season effective September 29th
- Modify hours of operation immediately from 10am-8pm to 3pm to 8pm for balance of season.
- Continue to operate until mid-October
- Other as directed by Council.
It would seem unlikely that Council, with the clubhouse already in debt, would choose to continue operations and ignore the growing debt; especially in light of it being only the clubhouse operations in question, the golf course itself would continue operating, and taking note as mentioned in the Manager’s report that “There are long periods of time when there are little to no customers” using the clubhouse restaurant. Why not encourage these customers to use one of the number of private businesses which exist in Manitouwadge offering the same (though in most cases with a more varied menu) service.
A lengthy and heated discussion amongst council followed for approximately 20 minutes, according to one audience member it focused primarily on how the hours would be reduced should #2 or a combination of #1 and #2 be put in to action and so it was no surprise when a motion was tabled, to implement a combination of #1. and #2 ; a motion which would see the Community Clubhouse operations closed as of September 29th with reduced hours in the interim. What came as a big surprise and seemed to confuse those in the audience, was when after those 20 minutes of debating how the hours would be amended, the motion was completely defeated with Mayor John MacEachern, Councillor Donna Jaunzarins and Councillor Sheldon Plumber voting against , resulting in no reduction of hours and the community clubhouse remaining open, and according to the Manager’s financial predictions continuing to grow it’s debt, until mid-October. The disappointment of Councillors Natalie Labbee and Connie Hunter, according to one report, was “quite visible”; understandably so as they had, at the end of afforementioned debate, included the hours suggested by Councillor Plummer in the motion presumably hoping to find a compromise which would allow the motion to be passed.
It seems quite unfortunate that a non-essential Township service, already incurring a debt would be kept operating without any attempt to, at the very least, reduce the debt being incurred by putting in place hours, adjusted to reflect the lull in business noted in Mrs.Hartling’s report. Will this intentionally incurred debt mean a tax increase for residents in 2013? How much over budget is too much for a non-essential township operation?
Mrs. Hartling’s report seemed, in my opinion, to be thorough and based on well researched, factual information, yet how much it contributed to the choice made by council, to have the Clubhouse continue growing its current debt, without any amendment to hours of operation or the closing date, seems unclear.
To read Margaret Hartling’s report in its entirety CLICK HERE.
