2016 Membership Meeting. March 29, 2016
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1 2016 Membership Meeting March 29, 2016
2 Overview Introduction Financial Performance Reserve Fund 2016 Dues and Fees Summary Open Discussion
3 2016 Board Members Peter Gorski, Chairman Larry Welford, Vice Chairman Lloyd Harrison, Treasurer Colby Keilty, Secretary Sean Gleason Deborah McManus Open-Social/Tennis Ed Gillis, Asset Management Liaison
4 Management Staff Patrick Feindt, PGA Head Professional Dave Smith, Superintendent Heather Allen, Harbor Club Manager Jim Light, USTA Tennis Professional Jesse Dwyer, Finance/Administration
5 2016 Year End Financial Review Fawn Lake Country Club
6 The Bottom Line Overall operations lost $57K for the year. Managers are tasked to fix this. Imperatives are: Increase memberships at all levels Keep the jewel in the crown (golf course) in good shape Make sure that member dining is experience is high quality Control expenses and plan for the future Hits and Misses for 2015
7 Membership Revenues $800,000 $700,000 $600,000 $63,812 Less than 2014 $500,000 $400,000 $300, $200,000 $100,000 $- Social Dues Golf/Tennis Dues Initiation Fees
8 Membership Pressure Points Decrease in initiation fees is the difference between a loss and a breakeven year. As our membership ages, golfers switch to Social. New residents more likely to join as Social than as Golf.
9 Harbor Club F&B Revenues 840, , , , , , ,
10 F&B Revenue growth needs to be profitable COGS F&B Budget Actual Delta
11 F&B COGS Expense Control is Key
12 F&B Other Factors BOGO s and other promotions giving stuff away for free is a hard way to make money. Labor Employee meals Food Spoilage/Loss Linens & Tablecloths
13 F&B Action Items Focus on increasing revenues through high quality food and service while maintaining steady COGS Watch Labor expense Obsessive expense control on other operating expenses
14 Golf Ops Golf Ops Revenues to Budget 520, , , , , , Major Variances Cart Fees -$10K Greens Fees -$6K Range Fees -$3K Outings - $10K 490, , , , These are mostly pure profit revenues. 470, , Actual Budget
15 Golf Maintenance $770,000 $760,000 $750,000 $740,000 $730,000 Actual Budget $720,000 $710,000 $700,
16 Golf Action Items Increase Outing revenues Find ways to increase member play Continue to control maintenance costs Watch golf ops labor Rethink golf cart leasing
17 Reserve Fund Capital Leases in each of the last 3 years to buy golf course maintenance equipment Financed new golf carts last fall to get out of Operating Lease trap Keeping this equipment in service longer is a key to building up the Reserve Fund
18 Mowers for greens Aeration Equipment A/C Harbor Club Water Heater Harbor Club Paint Harbor Club Oven Harbor Club Greenside Sprinkler Heads Reserve Expenditures
19
20 Reserve Fund Original study call for annual contributions of $320,000 by 2016 Actual contributions today $128,100 We have just completed a new study Funding at current levels do not support what has to be done So what do we do?
21 Reserve Study Special committee set up to prioritize all projects New funding plan New timetable for the reserve study
22 Dues and Fees 2016 Dues increase $5/month all membership categories Capital Reserve assessment Full Golf increase $30/month Tennis increase $15/month Social increase $10/month Fees Trail Fee increase $10/month Club monthly cart rental increase $15/month Club Cart Fee increase $5/18 holes and $2.50/9 holes Greens fee (non merchandise plan) $10 increase
23 Membership Value adds Visiting Family members can be your guest with no guest fee attached. Must live at least 35 miles from Fawn Lake Children, Grandchildren No restrictions on number of uses Removal of the age limit for children living in your home Today the limit is 23
24 In Closing It s your club Go to dinner one more time per quarter On-going improvements are happening on the golf course, tennis courts and the Harbor Club Bring a guest Recruit a new member Learn to play tennis Learn to play golf Use the best amenities in the area
25 Open Discussion
26
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