COTTAGE GROVE – Following initial reporting out of a City Council meeting regarding Middlefield Golf Course last week, updated municipal figures show that the city-owned facility operated at a net loss of nearly $230,000 in the past fiscal year.
According to full expense reports delivered to the Cottage Grove City Council by Public Works Director Faye Stewart, the total operating costs and capital investments reached $1,228,619.59 against $999,363.42 in gross revenue – leaving a net deficit of $229,256.17.
To address the shortfall, the City raised course fees in January and instituted a surcharge to pass along credit card and processing fees, which cost the city $23,000 last year.
“With the increase in fees and the ability to recover credit card fees, I’m optimistic the course will break even on expenses versus revenue,” Stewart said.
While the financial gap is significant, Stewart said that owning the course provides a major infrastructure benefit that saves taxpayers money elsewhere. The facility serves as a land-application site to cool treated wastewater effluent before it enters the Coast Fork Willamette River. Without the golf course, the city would be forced to build and maintain an industrial cooling tower, he said.
Stewart also noted that the golf course has an assessed property value of $1.5 million, along with $750,000 in equipment assets – values the city retains – whereas a mechanical cooling tower carries no resale value. Because of this dual environmental and utility role, capital upgrades for the course are funded through a mix of course operating revenue and municipal wastewater reserves.
Over the past nine years, the course has undergone various equipment and capital upgrades to modernize the facility’s operations and appearance:
The City bought 40 used electric golf carts in 2020 for $96,000, and added 10 new carts last year for $60,000.
Since 2018, the City has invested over $78,000 in mowers, top dressers, and a core harvester.
Landscaping improvements around the entrance sign and golfer statue cost $7,075 for the year.
Other capital investments include $28,288 for security cameras, $52,000 for a golf simulator, $16,000 for concrete work, and $5,500 for an event canopy.
An additional $12,000 in revenue was generated last year from mowing the former driving range owned by PeaceHealth Cottage Grove Community Medical Center.
Several cities in Oregon own and operate golf courses; Prineville and Pendleton are a few examples. Roseburg and Eugene own courses but contract out operating them. Stewart said Cottage Grove fees are lower than at most courses in Lane County and are similar to those at Hidden Valley and Oakway.
Looking ahead, Stewart said he hopes future improvements will lead to a remodel of the Pro Shop to include a space for the simulator, making it more visible, accessible, and accommodating for large groups.
However, those plans are on hold until the City can secure the funds for the roughly $50,000 project, to keep immediate focus on bringing the course’s operating budget back into the black.
