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Tiburon Peninsula Club 2009 Annual Member Meeting Financial Review November 12, 2009.

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Presentation on theme: "Tiburon Peninsula Club 2009 Annual Member Meeting Financial Review November 12, 2009."— Presentation transcript:

1 Tiburon Peninsula Club 2009 Annual Member Meeting Financial Review November 12, 2009

2 Overall Review Financially… The Club performed extraordinarily well in an extraordinarily poor economic environment

3 TPC’s Financial Model – A Review Two Major Constraints: Membership roll limited by Town of Tiburon (700/175) TPC is a multi-activity club (about 1/3,1/3,1/3 as it turns out) Operating Assumptions: Dues pay for operations only Activities are financially self-sufficient (Tennis, Swim, Fitness, F&B, Youth) An Emergency Reserve Savings Account is maintained (set at 2 months or oper. expenses = $370,000) Capital Replacement funds are reserved annually (reserves for depreciation) New member initiation $ pay for capital expenses and debt reduction

4 Initiation Fees Dues Non-Member Surcharges Cap-Ex and Debt Retirement Revenues Expenses Administration Facility Operations Aquatics Fitness Food/Bev Tennis Youth Activity Specific Member Charges Non-Member Activity Charges Activity Fee Activities – Set at Operational Breakeven Monthly Debt Retirement Fees Mortgage Payments Personnel/Operations- Aqua Personnel/Operations - Fit Personnel /Operations– F/B Personnel/Operations - Tennis Personnel/Operations - Youth TPC - Strategic Financial Model 20% 80%

5 TPC - Tactical Financial Model Initiation Fees Dues Non-Member Surcharges Cap-Ex and Debt Retirement Administration Facility Operations Monthly Debt Retirement Fees Mortgage Payments Reserve Savings Account (2 mos. of Ops Expense) Cap Ex Cash/Checking Acct Operating Cash/Checking Acct Code RED – An unexpected event wipes out Reserve Account – immediate member assessment is considered Code Orange – Reserve Savings Account is Not Full; All Initiation Fees Flow into Reserve Savings until Full + Examine Expense Cuts + Consider Dues Increase Code Green – Reserve Savings is full; all initiation goes toward Capital Expenses & Debt Retirement. 0% of the time 20% of the time 80% of the time * Currently 2 months of Op Expense = $370,000 Operating Condition “Code”

6 TPC – Capital Reserve and Accelerated Debt Retirement Initiation Fees $495,000 I Capital Reserve “Replacement” $250,000/yr Reserve Savings Account (2 mos. of Ops Expense) Cap Ex Cash/Checking Acct Assume Membership “roll” – 33 members/yr at “steady state” Gross Initiation Fees (@$15,000 non-refundable fee) - $495,000 II Cap-Ex New Projects $245,000/yr Mortgage Debt Retirement I.To meet upkeep and replacement demands II.To fund “new” Cap Ex projects In the event of a slow new membership period, I. has preference to II. by 2:1 until $250k is deposited into I. At the end of every year – one half of I and II balances will be applied to mortgage prepayment. Half of Year End Balance

7 Initiation Fees Dues Non-Member Surcharges Revenues Expenses Aquatics Fitness Food/Bev Tennis Youth Activity Specific Member Charges Non-Member Activity Charges Activity Fee Activities – Set at Operational Breakeven Monthly Debt Retirement Fees Mortgage Personnel/Operations- Aqua Personnel/Operations - Fit Personnel /Operations– F/B Persn/Ops - Tennis Persn/Ops - Youth TPC Comprehensive Financial Model 20% 80% Administration Facility Operations Operating Cash/Checking Acct I Capital Reserve “Replacement” $250,000/yr Emergency Reserve Savings Account (2 mos. of Ops Expense) Half of Year End Balance II Capital Expense New Capital Expenses

8 2009 Activity Performance Comparison

9 2009 Club Finances

10 Looking Ahead - 2010 Operations are set to breakeven without a dues increase – high confidence The Big Five are set to breakeven – 4 of 5 confident The Linchpin for ’10 Finances – Senior Conversion and New Member Enrollment


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