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Tiburon Peninsula Club
2011 YEAR END FINANCIAL REVIEW
All Committees Meeting – February 7, 2012
Executive Summary
 Congratulations on a stellar year
 Your efforts are truly appreciated
 Let’s do this again in 2012!
1
2011 UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY
MONTH
2
Operations /
PRE-BONUS
2011 Annual P&L Results by Unit
and a 5-Year Comparison
About ½ of last year, but a more representative # of future expectations
Cap Ex should average around $250,000/year
Difficult to budget for (we had a $140,000 delta y/y)
Note: Any year-end profits are returned to the respective business units
for equipment upgrades and to pay bonuses. There is no carry forward.
and how far we’ve come…
Again, these are pre-bonus results.
We owe Jerry, Mike and crew a
huge thank you for righting
the ship!
TPC Cash and Reserve Balances
(as of December 31, 2011 and pro forma)
Funds drawn down to close
First Republic Loan and for
pre-payment penalties to Bank of Marin.
2012 initiation fees will be deposited here first,
and then into Funds “C” and “D”.
Total Cash and Reserves (as of Feb. 1, 2012) = ~$1.5 million
4
2011 Membership Review and
A Look at What’s Ahead
As of December 31, 2011:
Regular Members =
Senior Members =
Total Members =
690
175
865
Annual Dues =
$1,837,753
As of January 31, 2012:
Regular Members =
Senior Members =
Total Members =
Annual Dues (est.) =
10 new members admitted in January 2012.
Conditional Use Permit allows for a total of 700
Regular Members. We are at the limit.
700
175
875
$1,944,700
Annual Dues Increase Y/Y = $100,000
The dues increase will help
offset increased costs of insurance,
utilities and labor
We currently budget for 35 new Regular Members annually (5% turnover) – from both
resignations and Senior Member conversions. If our estimate is correct, we will generate
approximately $525,000 for the Club’s capital expenditures (split roughly 40% for
replacement/maintenance and 60% for new projects). Already have 10 new members in 2012.
 For reference, in 2011 we had 30 Regular Membership resignations, 6 Senior conversions,
8 inactives/leaves of absence and 28 new members (~$500k in initiation fees).
 There is currently an in-town waiting list of 22 families, each who have submitted a
10% non-refundable deposit (i.e. $1,850).
5
Summary of 2011 Capital Expenditures
and Roadmap for 2012
2011 Cap Ex Summary
Clubhouse (largely café improvements):
Aquatics (concrete and starting blocks):
Locker Rooms (flooring and carpets):
Fitness (painting):
Administration (computers):
Grounds (fencing, playground, lighting):
$88,000
$20,000
$28,000
$3,500
$14,000
$79,000
2012 – Projects Approved by BOG
Tennis (resurfacing, leveling, windscreens): $64,700
Food & Beverage-related enhancements:
$10,000
2012 – Projects Currently Under Consideration ($ estimates)
Front Desk Reconfiguration:
$30,000
Tennis (lower court fences):
$55,000
Outdoor Café Trellis Cover:
?
Youth Tennis Center Project:
?
Main Pool Refurbishment:
?
6
Terms of our Construction Loan Refinancing with First Republic
(and what it means for the TPC)
LOAN COMPARISON FACTS:
1 – Loan Amount:
reduced from $5,620,000 down to $4,500,000.
2-
Interest Rate:
reduced from 6.25% down to 5.35%.
3-
Amortization:
reduced from 30 years down to 15 years.
4-
Monthly Nut:
roughly equivalent (~$36,000/month)
5-
Prepay Penalty:
None
WHAT THE NEW LOAN MEANS TO THE TPC:
1-
FOR THIS LOAN, WE WILL BE DEBT-FREE IN 15-YEARS – PERHAPS SOONER.
2-
SAVINGS OF MORE THAN $2,000,000 IN INTEREST PAYMENTS.
3-
WE HAVE GAINED A COMMITTED PARTNER IN FIRST REPUBLIC BANK.
- Lead sponsor for TPC Challenger
7
TPC Comprehensive Financial Model
Monthly Debt
Retirement Fees
Dues
Initiation Fees
Non-Member
Surcharges
Revenues
Expenses
Mortgage
“B” - Emergency Reserve
“A” - Operating
Savings Account
Half of
Year
End
Balance
Cash/Checking Acct
I
II
“C” - Capital Reserve
“D” - Capital
“Replacement”
$250,000/yr
Expense (New)
Administration
Facility Operations
Capital Expenses
Activities – Set at Operational Breakeven
Activity Specific
Member Charges
Non-Member Activity Charges
80%
20%
Activity Fee
8
Aquatics
Personnel/Operations- Aqua
Fitness
Personnel/Operations - Fit
Food/Bev
Personnel /Operations– F/B
Tennis
Persn/Ops - Tennis
Youth
Persn/Ops - Youth