Estero Country Club Annual Meeting Monday, March 12, 2018 - PowerPoint PPT Presentation

Estero Country Club Annual Meeting Monday, March 12, 2018

HURRICANE PREPAREDNESS GLORIA BECK

ECC Financial Update Claire Comstock, Treasurer Review of our financial results for the first quarter of the fiscal year.

Controller Dana Aerts Finance Committee Jeff Adair Leo Au Bob Collins Barry Freedman Mike Lanciotti Tom Young Thank you to Finance Committee members and staff.

Membership 01.31.18 11.01.17 11.01.16 11.01.15 Golf Equity 281 274 275 289 Sport Equity 50 48 48 52 Social Equity 169 172 162 147 Annual Tennis 22 25 33 30 Honorary 1 1 1 1 Totals 523 520 519 518 2018 budget was built assuming we would begin the fiscal year with 265 golf members; we have exceeded our budget assumptions. We are now at 281 golf, 50 sport, 169 social and 22 annual tennis for a total of 523 members. We also had 16 seasonal trial members by January month end. Half of them have committed to becoming full golf members. We continue to keep our eye on membership mix as an important consideration in forecasting revenue and capital.

Balance Sheet 01.31.18 10.31.17 10.31.16 Cash 3,197,111 3,027,676 2,786,202 Other Current Assets 740,598 847,522 751,150 Property & Equipment 8,571,740 8,322,939 8,583,507 12,509,449 12,198,137 12,120,859 Deferred Dues 2,482,505 2,290,613 2,204,902 Other Current Liabilities 164,268 321,250 291,754 Member Bonds 390,750 420,750 446,250 Equipment Leases 160,717 189,964 322,627 3,198,240 3,222,577 3,265,533 Equity 9,311,209 8,975,560 8,855,326 12,509,449 12,198,137 12,120,859 Our cash position is $423,767 higher than at this point last year and currently stands at $3,197,111. It’s worth noting that our assets include some front-loaded items such as dues, trail fees, as well as Mill River and handicap fees. Liabilities are $125,369 less than a year ago primarily due to a decrease in our equipment loans payable. We are about to sign a new 2018 golf course maintenance lease package in the amount of $233,456 so this line item will increase in future months.

Operations 2017 Actual Budget Revenue 4,588,016 4,786,853 Cost of Sales (610,634) (636,150) Operating Expenses (3,865,725) (4,149,417) Operating Income 111,657 1,286 By way of brief review and for context, our 2017 fiscal year ended with net operating income well above budget coming in at a positive $111,657. While revenues fell short of 2016 actuals by $73,166, we kept our cost of sales below budget and realized significant expense savings as well.

Operations 2018 YTD Actual Budget Revenue 1,292,594 1,257,923 Cost of Sales (194,514 ) (204,364 ) Operating Expenses (1,105,521 ) (1,149,305 ) Operating Income (7,441 ) (95,746 ) Through January 31, 2018, our net operating loss was $7,441, which was $88,305 favorable to budget. Careful expense management and higher revenues contributed 60/40 respectively to this result. I am also pleased to report that February results are very strong. We are now in the black year to date and net operating income exceeds this month’s budget by $55,000. While these results are strong, our operating income does not reflect any post hurricane recovery activities. Proceeds and expenses are being reflected separately from our normal operating results as is proper accounting practice.

Operations 2018 YTD Actual Budget Revenue 1,292,594 1,257,923 Cost of Sales (194,514 ) (204,364 ) Operating Expenses (1,105,521 ) (1,149,305 ) Operating Income (7,441 ) (95,746 ) Finally, a caveat regarding our budget. 2018 is a challenging year. In building a budget we needed to account for a shorter season on the revenue side and adjust key expense areas like payroll and hours of operation to make the numbers work during restoration. As I reported in November, our budget does show an operating loss of almost $40,000 for 2018. To date we have identified close to $100,000 of items that could contribute positively to the shortfall as the year progresses. We should feel good about where we are at this point but must be mindful and keep a very close eye on both revenues and expenses as we move into restoration.

Capital 2017 Actual Capital Dues 529,721 Clubhouse Renovation Payments 4,466 Net Membership Contributions 127,863 Proceeds from Sale of Equipment 17,850 Interest / Heritage Fund / VCA 2,116 682,016 Capital Expenditures (375,972) Restoration Project (76,109) 229,935 As of October 31, 2017, our capital expenditures totaled $375,972. Just a small portion were hurricane related. Our construction in progress for the 2018 course restoration stood at $76,109 which included work done by Gordon Lewis our course architect, LAI, our design/build contractor, Grady Minor engineering, and permitting fees from the Village of Estero. We ended the year at $229,935.

Capital 2017 Actual Capital Dues 529,721 Clubhouse Renovation Payments 4,466 Net Membership Contributions 127,863 Proceeds from Sale of Equipment 17,850 Interest / Heritage Fund / VCA 2,116 682,016 Capital Expenditures (375,972) Restoration Project (76,109) 229,935 Plus Capital Carryforward 2016 561,871 Carryforward to 2018 791,806 When you add 2016 and 2017 carryforwards together, they total $791,806. This is the capital that we carried forward into 2018.

Capital 2018 Projection Carryforward from 2017 791,806 Capital Dues 700,000 Clubhouse Renovation Payments 0 Net Membership Contributions 85,000 Proceeds from Sale of Equipment 15,000 Interest / Heritage Fund / VCA 20,000 820,000 Capital Expenditures (433,563) 2018 Surplus 386,437 Available for Hurricane Cleanup & Restoration 1,178,243 Our 2018 capital budget reflects higher capital dues which we began collecting in November. Capital expenditures are budgeted to be somewhat higher than 2017 and total $433,563. We are now projecting a 2018 capital surplus of $386,437. Together the carryforward and this year’s projected surplus total $1,178, 243. These monies represent what we have available to fund hurricane cleanup and restoration.

Irma Damage and Restoration Project Budgeted 2018 CapEx Greens & Tees Interior Remediation Fairways & Rough Drywall & Insulation Sand Traps Roof Bulkheads on #2 & #16 Exterior Trim, Gutters & Paint New Staging Area Hurricane Impact Windows Relocate / Expand Chipping Area Clubhouse Irrigation Tree Removal & Debris Cleanup Clubhouse Landscaping Storm Drains Golf Course Landscaping Cart Paths (Damaged & Elective) Current Budget $3,773,274 + Contingency of $340,121 (Before Insurance Recovery) Our current budget for the golf course restoration and Irma recovery is $3,773,274 plus a contingency of $340,121. Items included in this figure are listed here.

Insurance Coverage Buildings Golf Course Inland Marine Total Equipment, Debris Damage Carts and Removal Tennis Courts Insured Value or Limit 12,671,670 250,000 250,000 2,072,137 Expenses 653,366* 256,830 43,398 48,187 1,001,781 Deductible (253,433) (25,000) (25,000) (8,099) (311,532 ) Exceeded Limit (6,830) (6,830) Maximum Recovery 399,933 225,000 18,398 40,088 683,419 Received-to-Date 390,088 * Does Not Include Clubhouse Windows We have a comprehensive commercial insurance package and have filed claims in 4 categories — our buildings, the golf course which includes debris cleanup and course damage and what’s called inland marine coverage which includes things like the tennis courts, our equipment, and the golf carts. Each category has a limit shown in green here, meaning any claims above this amount won’t be covered. Coverage for our buildings is equal to their appraised value of $12,671,670. The same is true for our inland marine coverage at $2,072,137. We have typical limits for the two golf course categories.

Insurance Coverage Buildings Golf Course Inland Marine Total Equipment, Debris Damage Carts and Removal Tennis Courts Insured Value or Limit 12,671,670 250,000 250,000 2,072,137 Expenses 653,366* 256,830 43,398 48,187 1,001,781 Deductible (253,433) (25,000) (25,000) (8,099) (311,532 ) Exceeded Limit (6,830) (6,830) Maximum Recovery 399,933 225,000 18,398 40,088 683,419 Received-to-Date 390,088 * Does Not Include Clubhouse Windows On the next line you will see that our expenses or claims for Irma totaled $1,001,781. Note that this does not include the cost of the replacing the Clubhouse’s 30 year old windows with impact resistant glass. We proceeded with this project to protect our repair investment and prevent future damage from severe weather.

Insurance Coverage Buildings Golf Course Inland Marine Total Equipment, Debris Damage Carts and Removal Tennis Courts Insured Value or Limit 12,671,670 250,000 250,000 2,072,137 Expenses 653,366* 256,830 43,398 48,187 1,001,781 Deductible (253,433) (25,000) (25,000) (8,099) (311,532 ) Exceeded Limit (6,830) (6,830) Maximum Recovery 399,933 225,000 18,398 40,088 683,419 Received-to-Date 390,088 * Does Not Include Clubhouse Windows On the next line I show that each type of coverage is subject to a deductible which sometimes is a flat amount as is the case wi th the golf course and in others it’s based on a percentage of the value of the item like our buildings whose deductible is 2 percent of the appraised value. We were within the limits of our coverage on all items except debris removal which we exceeded by $6,800.