Membership fees at two of Adelaide's most prestigious golf clubs are likely to rise significantly in the wake of exorbitant increases in council rates for both clubs from July 1.
Valuer-General Neil Bray has increased the capital value of Kooyonga Golf Club by more than $7 million from $3.625 million in 2007-08 to $10.685 million in 2008-09. This will increase the club's council rates payable to West Torrens Council from $20,171 to $60,905.
The value of the Glenelg Golf Club has increased by 357 per cent from $2.4 million to $8.57 million, increasing their rates within the same council from $13,355 to $48,849.
The increase in land value will also impact on other levies, in addition to council rates, including water, sewer fees and the emergency services levy. Glenelg Golf Club will also be hit by a rise in land tax, however, Kooyonga is exempt from paying that fee.
Kooyonga Golf Club general manager Adrian Edgar said the club would appeal the valuation in a bid to minimise the financial impact for its 1000 members.
"It is a large increase, a hell of a lot of money, and it will have an impact . . . it can either be absorbed by the club or membership fees will have to go up," he said.
"That is something we will have to do some serious thinking about if our appeal fails."
Glenelg Golf Club general manager David Brand said the club was "examining a number of possibilities" in relation to the extra costs.
"It's going to have a significant impact," he said.
In a letter to West Torrens council, the Valuer-General wrote the "... current capital values determined for a number of golf courses have become increasingly conservative over recent years particularly given the rapid growth in value attributed to other major land use categories".
"As a direct consequence and recognising the value inconsistencies of some metropolitan Adelaide golf courses that have arisen over time, I have instituted a comprehensive review of capital values for all such properties, for the ensuing financial year," Mr Bray wrote.
By Matt Williams, AdelaideNow
