The Weyburn Golf Course lost $36,000 in 2004.

An unaudited financial statement presented to the annual general meeting on Thursday shows revenue of $498,120 set against expenses of $534,216, with the president warning members the club can't survive financially with existing membership at the current membership rate.

"Revenue was one of the lowest we've seen in the last five years," said finance officer Chris Michel. "It's quite a transition from 2003, which was a great year, to a horrible year." The club lost about $6,000 in 2003.

Michel said both green fees and memberships were down during the year because of the late spring and cold wet weather that canceled tournaments, flooded a green, caused fungus on some greens, and caused havoc in a pumphouse. Lower golfing activity meant liquor, food and cart rental were also down, he said.

"It all goes hand in hand."

Pro shop margins still run at 34 per cent, and the kitchen has a margin of 20 per cent, both of which are comparable in those industries, said Michel.

The golf course carries a mortgage of $494,627.

Michel said unexpected expenses this year included a provincial sales tax (PST) audit, which resulted in an additional payment of $4,900 to the government for unpaid PST on rental items. Management was unaware of that rental materials are also charged PST, said Michel.

He said a department circular with the information was not sent to the Weyburn golf course.

Other unexpected costs included equipment repairs, golf cart problems which should end with new electric carts this year, and heavier than expected landfill charges.

This summer the club's source of water also was found in July to be contaminated, according to president Blair Pateman. Water was hauled in for some time until the city's connection, at a cost of $15,000 was arranged, he said. It will be repaid over the next 15 years.

The sewage system is also causing problems, costing the club $3,000-$4,000/year to haul away sewage. Pateman estimated an upgrade would cost about $20,000.

To boost revenue, members approved a membership drive in 2005 that will offer lower rates for new members over the next three years.

Club manager Rod Carroll told members the golf club at Melfort almost doubled its membership in one year with a similar program.

"It's a way to raise another $50,000 to $70,000 for the club and I'm quite excited about it," he said. He said a goal of at least 100 new members is attainable.

Pateman said the club has not done much fund-raising in recent years but will begin the new year differently. The first event will be a New Year's Eve dance, to be hosted with the Weyburn Curling Club, he said.

Pateman said the board is relieved to have resolved a two-year-old property tax dispute with the Rural Municipality of Weyburn. The province's 1997 assessment saw the club's property taxes jump from $4,800 to $38,000/year. The club appealed and lost but has not paid taxes since 2002. Pateman said Weyburn is among only 23 other golf clubs required to pay property tax and there is no allowance for a non-profit society to be tax exempt.

Details will be released by the RM at its Tuesday, Nov. 16 monthly meeting.