Tiburon Peninsula Club 2016 Annual Meeting Financial Review – November 10, 2016

TPC Business Model Refresher New member initiation fees fund capital reserves Consistently average 30-35 new members (4-5% turnover) per year Current in-town waiting list is 35; out-of-town waiting list is 94 Provides ~$700k per year to TPC Member monthly dues cover Admin & Operations ~+5% increase to monthly dues coming in Jan ’17 to match inflation TPC remains 3rd lowest monthly dues in region Activity departments run at net zero All profits up to cap levels distributed to employees at year end

2016 Financial Highlights (thru September 30, 2016) TPC finances remain solid with ~$1.7m in cash Significant ramp in maintenance spending to improve quality of Club facilities (impacts Admin & Operations budget) Reserves building for South Property Project, with start awaiting Town EIR and Planning Commission approval Departments performing solidly, led by Café and Swim Healthy membership waiting list

2016 Membership Review As of September 30, 2016: Regular Members = 700 (700 is max under CUP) Senior Members = 175 (175 is max under CUP) Total Member Families = 875 Monthly Dues Income = $219k (covers operations) YTD Net Initiation Income = $381k (used for Cap Ex projects) Our in-town wait-list is 35 families, each who have submitted a 10% non-refundable deposit. 25 new members admitted thru September, and 2 Senior Conversions We conservatively budget for 30 new Regular Members annually (~4% turnover) – from both resignations and Senior Member conversions.

2016 YTD Department P&L’s Revenue Revenues (% chg vs. 2015)   Revenue Revenues (% chg vs. 2015) Expenditures Net Income vs. Budget Admin $2,093,676 0% $1,901,221 $192,455 -$93,167 Café $675,836 +44% $448,378 $12,445 $6,203 Tennis $501,809 -8% $471,963 $29,846 -$5,478 Swim $451,325 +14% $318,827 $132,498 $18,594 Fitness $270,996 $270,539 $456 -$12,868 Youth $96,650 -18% $93,386 $3,264 $10,139 Note: All figures are compared vs. ytd 2015 Note: Café benefitted from ~$23k in unused minimum in 1H16 Note: Admin deficit reflects a strategic +56% increase in Maintenance spending Note: Any year-end profits are returned to the respective business units for to pay bonuses (up to cap levels) and equipment upgrades.

Highlights of Maintenance Expenditures (thru September 30, 2016) Capital spending lower as rebuilding reserves for future projects Maintenance spending higher as strategic focus on improving look/feel of TPC facilities Increased maintenance, taxes, utilities etc. necessitate annual dues increase Increase in Maintenance Spending 2016 vs. 2015 (thru Sept) Facilities Maintenance +40% Departmental Maintenance +66% Grounds Maintance +65%

TPC Cash and Reserve Balances (as of September 30, 2016 - unaudited) Account Amount Operating Cash/Check Acct Balance on 1/1/16 $150,389 Balance on 9/30/16 $17,805 Net Change -$132,584 Emergency Reserve Savings $600,019 $600,217 $198 CapEx Savings Account $789,520 $1,079,715 $281,194 Total Cash Balance 9/30/16 $1,697,736 Target ~3 months of operational expenses on reserve ($600k). We self-insure for force majeure events (i.e. earthquakes) Funded through initiation income and utilized for member approved projects and ongoing capital maintenance Total cash and reserves increased approximately $148k so far during 2016

Closing Remarks Congratulations to all departments on another solid year Thank you to all volunteer members for your time and effort in making the TPC a great place for all members, family and friends to enjoy Thank you to Jerry his team for keeping our ship sailing straight As always, this is your club. If you have suggestions on ways to improve what we do, please let us know.

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