Presentation - Whitevale Golf Club

Opening Remarks
John Trimble
President
2013 Board of Directors
John Trimble
Howard Kirke
Michelle Miles
Steve Campbell
Terry Calder
President
Vice-President
Secretary
Captain
Greens
Clayton Spahn
Chris Couch
Lori Sheffield
Tim Charlton
Glenn Davis
Finance
Marketing
House/Social
Membership
At Large
AGENDA
―Vote on R2R Additional Assessment Motion ‐ Ballot Box Open
―Opening Words – John Trimble
―Adoption of the Minutes of the 2012 Annual Meeting
―Business Arising from the Minutes
―R2R Update with Q & A on Project – Howard Kirke
―Ballot Box Closed – Ballots Counted
―2013 Finance Report – Clayton Spahn
―President’s Report – John Trimble
―Directors’ Reports: Will be in handout format with Directors available for questions
―Question & Answer period
―Finance Report on Budget for 2014 – Clayton Spahn
―Report on R2R Additional Assessment Motion (if possible)
―Adjournment
2013 R2R Update
Howard Kirke
2013 R2R Update
Howard Kirke – V.P/Chair of LRP
What has happened in 2013
– We had three big goals in 2013.
• Build the practice facility and get it seeded before winter.
• Demo the clubhouse.
• Start excavation of the clubhouse.
2013 R2R Update
Howard Kirke – V.P/Chair of LRP
– First budget with tender pricing was reviewed in November
– The price for the building was much higher than acceptable
– We challenged our team to find savings without compromising the design
– After all the value engineering our team still expects an overrun of $300,000
2013 R2R Update
Howard Kirke – V.P/Chair of LRP
– Due to the value engineering exercise the permit drawing had to be resubmitted and re‐priced.
– The new pricing will be available for the committee to review this week.
– The new permit drawings have been submitted to the city on January 16, 2014.
2013 R2R Update
Howard Kirke – V.P/Chair of LRP
Plan for 2014
― Our goal now is to start building this March/April.
― That means we will not have the new building open in 2014.
― The Practice facility depends on Mother Nature but July or August seems reasonable.
― Cart Barn will be built this season with the same timeline as the clubhouse.
― We will share the new budget information with the membership ASAP.
― Occupancy scheduled for spring 2015.
R2R Budget
Clayton Spahn
R2R Budget Update ‐ SOURCES
Clayton Spahn – Finance Anchor
Budget
SOURCES
SWMP Land Sale
$ 1,421,384
Bypass Land Sale
$ 809,987
CPA Assessments
$ 928,719
R2R Assessments
$ 318,600
Debt Financing
$ 4,500,000
Asset Sales
$ ‐
Transfer from Capital Fund $ 21,310
$ 8,000,000
TOTAL SOURCES
Collected
to Date
$ 1,803,776
$ (42,978)
$ 619,146
$ 318,600
$ ‐
$ ‐
$ ‐
Committed
Amounts
$ ‐
$ ‐
$ 318,600
$ ‐
$ ‐
$ ‐
$ ‐
Estimated
Additional
$ (413,586)
$ 820,590
$ ‐
$ 212,400
$ 4,500,000
$ ‐
$ 186,710
Total
Revised
$ 1,390,190
$ 777,612
$ 937,746
$ 531,000
$ 4,500,000
$ ‐
$ 186,710
$ 2,698,543 $ 318,600 $ 5,306,114 $ 8,323,257
• Assumes land sales closes by July 1, 2014
• Assumes approval of the additional $400 R2R assessment
• The additional assessment is not sufficient to cover the full extent of the
expected overrun and will require use of other capital or additional debt
• Assessment needed to keep debt in target range of $4.5M to $4.7M that will
keep debt servicing fees in the low $600s
R2R Budget Update ‐ USES
Clayton Spahn – Finance • Largest variance is in clubhouse
construction itself. >$600k over our initial
budgets due to under estimation of the
original clubhouse size.
• Practice facility came in ~$50k over budget
• Original budget assumed that sewage
costs could be deferred until the new road
entrance but this is not an option so had to
find an alternative solution
• Unanticipated cost of $128k for soil
remediation related to oil contamination
• Increased FF&E costs
• Contingency reset to 4.5%, to be funded
from the clubs operating line
2013 Finance Report
Clayton Spahn
2013 Finance Report
Clayton Spahn‐ Finance
• Financial statement overview
– Audit report is in the standard format and unqualified.
– Adoption of Accounting Standards for NPOs.
– Statement of Operations.
• Deficiency before undernoted items in F/S of $149k.
– Decline in power cart revenues ($27k off budget). – Unexpected temporary facility set‐up cost – trailers, water and electrical hook‐ups (~$30k).
– Greens consultant and resodding activities ($~$20k).
– Temporary facility service levels vs. budget service levels.
• Membership transfer activity and initiation fees remain high.
2013 Finance Report
Clayton Spahn‐ Finance
• Financial statement overview
– Statement of Financial Position.
• Accumulation of cash, $1,858k as at Oct 31.
• Increase in capital reflecting R2R project, less land sold and items disposed of in clubhouse demolition.
• Increase in payables due to R2R and taxes on land sale.
– Statement of Change in Member’s Equity.
•
•
•
•
R2R assessments began, new R2R Fund established.
Continued CPA assessments, transferred to R2R Fund.
Land sold and transferred to R2R Fund.
Shortfall in Operating Fund funded from Capital Fund.
2013 Finance Report
Clayton Spahn- Finance
REVENUE ($000s)
MEMBERSHIP FEES
ASSOCIATE PREMIUM FEES
GUEST GREEN FEES
TOURNAMENT GREEN FEES
POWER CARTS FEES
PRO SHOP SALES
MEMBER ACCOUNTS' INTEREST
MISCELLANEOUS/DISCOUNTS
FOOD & BAR. GRATUITY, HOUSE MIN.
TOTAL REVENUE
BUDGET
2013
ACTUAL
2013
$
VARIANCE
1,696
5
151
29
140
0
17
22
580
1,684
4
187
20
113
0
14
26
577
(12)
(1)
36
(9)
(27)
2,640
2,625
(15)
(3)
4
(3)
2013 Finance Report
Clayton Spahn- Finance
EXPENSES
FOOD & BAR, GRATUITY
CLUB HOUSE
PRO-SHOP
GREENS
GENERAL ADMINISTRATION
TOTAL EXPENSES
GROSS SURPLUS /(DEFICIT)
BUDGET
2013
ACTUAL
2013
$
VARIANCE
593
214
319
947
617
614
245
333
961
621
(21)
(31)
(14)
(14)
(4)
2,690
2,774
(84)
(50)
(149)
(99)
2013 Capital Report
Clayton Spahn- Finance
BUDGET
ACTUAL
2013
2013
CAPITAL REVENUE
INITIATION FEES
$
100,000
$
153,250
MEMBERSHIP ASSESSMENT FEES $200 X 531
$
106,200
$
106,200
TOTAL CAPITAL REVENUE
$206,200
$259,450
BUDGET
ACTUAL
2013
2013
CAPITAL EXPENSES
Greens Roller
Replace Diesel and Gas Holding Tanks
$
$
11,900
4,000
$
$
14,209
4,940
Grinder for Sharpening Mowers
2 Turf Breeze Gas Powered Portable Fans
Rough Mower
Interlock/Curb Program
Replace Support Post for Rain Shelter on #12
New Pull Carts (10)
TOTAL GREENS CAPITAL IMPROVEMENTS & EQUIPMENT
$
$
$
$
$
$
$
25,000
30,000
35,000
10,000
2,100
3,000
121,000
$
$
$
26,500
23,586
37,191
10,074
2,513
2,380
121,393
$
85,200
$
138,057
TOTAL CAPITAL SURPLUS/(DEFICIT)
$
$
$
$
President’s Report
John Trimble
2013 Highlights
John Trimble ‐ President
―91% Support to move forward with R2R.
―Practice facility construction complete.
―Parking lot sub‐grade complete.
• Asphalt will be last item in the project.
―Demolishing of Clubhouse complete.
―Moved into our temporary facilities.
―Extensive number of hours spent on drawings, budget and permits for R2R.
2013 Highlights
John Trimble ‐ President
―Course conditioning again not up to satisfactory levels.
―Retained course consultant Thom Charters to assist in plan to remedy the issue.
―Authorized our Superintendant to implement the plan:
• Consisting of a more aggressive aeration program, the removal of trees and the purchasing of necessary equipment.
―Course conditioning is top priority moving forward.
2013 Highlights
John Trimble ‐ President
―First land sale closed.
―Second projected to close July 1, 2014.
In 2013, the members approved a motion that should
this 2nd land sale not close on July 1, 2013 then the
Board would begin collecting a series of 15 special
monthly assessments of $100 each. Although the sale
did not close in 2013, the Board felt the likelihood of the
sale being completed in 2014 was high and voted to
defer collecting these amounts until after the closing
date and only if needed.
2013 Highlights
John Trimble ‐ President
―Two new policies created.
• Policy #4.9 – Exceptional Juniors This policy was designed to acknowledge the
exceptional achievements of individual juniors.
• Policy#4.10 – Rejoining after a sale
This policy was designed to offer a “remorse” period for
members who have sold their membership and wish to
rejoin with a 12 month period.
―Existing policy reworked.
• Policy #4.3 ‐ Senior Honorary
Wording was added to this policy to ensure clarification.
2013 Highlights
John Trimble ‐ President
―Terminated contract of our long time Head Professional
―New search underway with over 60 applicants received
―Our G.M has conducted over 15 interviews
―Tomorrow the hiring committee will be interviewing five candidates recommended by our G.M.
―The plan is to have a new Head Professional in place for March 1st.
Questions
2014 Operating Budget
Clayton Spahn‐ Finance
–
–
–
–
–
–
–
–
Break even budget.
Assumption of a full year without the new clubhouse.
Anticipate a significant decline in golf revenues.
Increase in the greens maintenance budget for new practice facility.
“A” member base dues increase set at 5%, continue to reduce the spread between membership categories based on demand factors (A to B $400, B to C $300).
Increase in out of town and medical dues, no social leave.
No change to guest fees or cart fees.
No house minimums for 2014.
2014 Operating Budget
REVENUE ($000s)
MEMBERSHIP FEES
ASSOCIATE PREMIUM FEES
GUEST GREEN FEES
TOURNAMENT GREEN FEES
POWER CARTS FEES
PRO SHOP SALES
MEMBER ACCOUNTS' INTEREST
MISCELLANEOUS/DISCOUNTS
FOOD & BAR. GRATUITY, HOUSE MIN.
TOTAL REVENUE
EXPENSES
FOOD & BAR, GRATUITY
CLUB HOUSE
PRO-SHOP
GREENS
GENERAL ADMINISTRATION
TOTAL EXPENSES
GROSS SURPLUS /(DEFICIT)
ACTUAL
2013
BUDGET
2014
$
VARIANCE
%
VARIANCE
1,684
4
187
20
113
0
14
26
577
1,829
0
92
0
115
88
14
27
196
145
(4)
(95)
(20)
2
88
0
1
(381)
8.6
(100.0)
(50.8)
(100.0)
1.8
2,625
2,361
(264)
(10.1)
0.0
3.8
(66.0)
ACTUAL
2013
BUDGET
2014
$
VARIANCE
614
245
333
961
621
250
77
383
1,042
608
(364)
(168)
50
81
(13)
(59.3)
(68.6)
15.0
8.4
(2.1)
2,774
2,360
(414)
(14.9)
(149)
1
150
%
VARIANCE
2014 Capital Budget (non R2R)
Clayton Spahn‐ Finance
Revenue
–
–
–
–
Capital assessment remains at $200 / member.
Continue CPA assessments, round up to $600/ member.
Assessments to be fixed monthly amounts depending on R2R vote. Initiation fees assumed to revert to historic norms.
Expenditures
– Beginning investment to replace aging greens equipment, entered into new capital/ operating leases.
– New driving range equipment and furniture.
– Renewed focus on golf course (tree program, 12th tee).
– Designs for new maintenance facility.
2014 Capital Budget
BUDGET
CAPITAL REVENUE
2013
INITIATION FEES (25 @ $4,000)
MEMBERSHIP ASSESSMENT FEES $200 X 531
$
$
TOTAL CAPITAL REVENUE
$
100,000
106,200
206,200
CAPITAL IMPROVEMENTS & EQUIPMENT
2014
Year #1 - Capital Lease - TurfCare
5-Greens Mowers, 1-Greens Aerator, 1-Workman, 1-Top Dresser, 2-Utility Carts
3 - Blade Cutting Units, 1 - Range Picker
Year #1 - Capital Lease - John Deere Equipment (Lease with Maxium)
$
25,230
1 - Dakota Material Handler, 1 - Sport Topper, 1-Side Conveyor, 1-Front Door
Year #1 - Capital Lease - Kooy Brother
2 - Kabota Tractor, with one loader and back hoe attachment
Traction Unit for Picker
$
8,736
$
$
15,000
7,500
Range Furniture & Equipment
$
18,000
Tree Planting
$
13,000
Enlarge #12 Blue/Black Tee
$
6,000
#15 and Maintenance area - re-design
New Pull Carts
TOTAL GREENS CAPITAL IMPROVEMENTS & EQUIPMENT
$
$
$
3,500
9,000
105,966
2014 Dues Comparison
2014 proposed dues
(least restricted
category)
Peer Club Name
2014
Assessments
TOTAL
MEMBERSHIP
COST
Cedarbrae Golf Club
$
4,700
$
300
$
5,000
Meadowbrook Golf Club
$
4,012
$
350
$
4,362
North Halton
$
3,800
$
360
$
4,160
Whitevale Golf Club
$
3,650
$
800
$
4,450
Average of all Clubs
$
4,041
$
453
$
4,493
- Member dues for operations remain low in our peer group.
- Assessments are highest due to our ownership/ funding
model and in order to fund capital improvements.