FREQUENTLY ASKED QUESTIONS
| | September 2023 Town Hall Regarding Proposed Dues, Capital Fees, and Initiation Fees Changes |
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QUESTION
| The speaker mentioned a $400,000 operating deficit. How do you plan to deal with that deficit? | ANSWER |
The deficit of over $400,000 is projected without any increase in dues. Inflationary pressure continues to drive up costs in all areas of the Club’s operations, but most significantly in our labor costs. While inflation appears to be slowing in some areas, these projections are based on our best estimates of where all costs will fall next year, in order to maintain all services at their current levels. The proposed 7% dues increase, if approved, will eliminate the operational deficit. |
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QUESTION
| Where does the Club plan to finish financially in 2023? | ANSWER |
The Club is currently forecasting a small operating profit for 2023, likely just above break-even at 1% of revenue. |
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QUESTION
| Has the Club considered raising fees for guest golf rounds or sponsored non-member events (weddings, etc.)? | ANSWER |
CCD has raised these fees and will continue to benchmark our fees with our peer clubs. |
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QUESTION
| What is the delineation between types of capital investment, and what will the monthly capital dues fund? | ANSWER |
The Board and management see three distinct types of capital investment: | Regular Capital: Furnishings, fixtures, equipment, and technology (FFET). |
Necessary Club Infrastructure: Betterment or replacement of systems, existing services, and infrastructure. | Aspirational Capital: New services and significant improvements that require a separate funding source and Member vote. The Phase II projects are a recent example. |
The proposed increase in capital dues will only be used for Regular Capital and Necessary Club Infrastructure. Significant Aspirational Projects will require separate funding and Member approval. |  |
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QUESTION
| Why will the Club only install fire suppression for 80% of the Club? What is a “dry” fire suppression system? | ANSWER |
CCD currently has sprinklers in the kitchen wing and all recently renovated spaces: the Bowling Center, Fitness Center, Ladies’ Locker Room, and the French Room. By adding a new system that will run through the clubhouse from east to west in the existing attic space, we will be able to sprinkle most of the building, better protecting life and property. The few remaining un-sprinkled areas will be protected when other work in the vicinity of those areas provides the opportunity to do so (renovations, repairs, etc.), without incurring the significant “cutting and patching” costs in those areas solely for the fire suppression work. Pipe mains will be sized to anticipate this future expansion of the system. The currently proposed 80% level will protect the building from the top down, and it is our belief that this will effectively prevent any catastrophic loss due to a fire in the building.
| The new dry system will be installed in unheated attic space, where a wet system may freeze and burst. The piping in a dry system is rapidly filled with water in the event a fire is detected. |
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QUESTION
| Will any or all of the designated short-term Necessary Infrastructure Projects be subject to a future Member vote? | ANSWER |
No. If the capital dues proposal is passed, the Board and staff will continue planning work on these projects, which will commence after final plans, contractor bidding, and the passage of any unavoidable wait time due to contractor or material scheduling. The Board believes that all of these projects are important, but it will also consider the availability of funds. A Member vote will only be required if funding falls short due to the timing of the work, or if costs come in significantly higher than currently expected. |
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QUESTION
| Does the “Total Cash” of $3.9 Million shown on the “Stats of the Club” slide presented include any payments from the federal government for applicable Covid-19 relief measures? And does it reflect the cost of the pickleball court construction project? | ANSWER |
No; and partially yes, partially no. The Total Cash amount included in the slide is as of our most recent audited financial statement of 12/31/2022. Revenue (and cash) from any Paycheck Protection Program loan forgiveness was reflected in our 2021 year-end financial statements. The Club also submitted for a credit against payroll taxes previously paid, under the Employee Retention Credit program. As our CPAs concluded there was “reasonable assurance that the Club has substantially met all grant conditions,” the revenue from this credit was recognized as other (non-operating) income in 2021. However, due to a backlog of requests at the IRS, our credit (which came in the form of a refund check), was not received until August 2023. Work on the pickleball courts started in 2022, and some payments had been made as of that date, but the majority work was completed in 2023. At the end of August 2023, with the receipt of the ERC credit cash, and almost all of the pickleball court construction costs paid, the Club’s cash and cash equivalents balance was approximately $4.8 million. It should be noted that some significant capital projects planned for this year have been pushed (for various reasons), mostly into next year. The current cash balance at this point is higher than anticipated due these expenditures being delayed.
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QUESTION
| What are the proposed new capital dues for each membership category? | ANSWER |
The quick answer is that the proposed capital dues will change for all Member categories from the current quarterly fee (which has remained constant for a number of years), to a monthly charge in the same amount. Specifically, the proposed capital dues by membership category are: |
Active Golf, Active Limited Golf, Social (30+), Spousal Privilege: $125 per month | Senior: $110 per month |
Intermediate: $80 per month | Junior, Social (21–29): $50 per month |
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QUESTION
| How do the new capital dues impact the current long-range planning fee? | ANSWER |
The current long-range planning fee is being used to pay off the loans the Club took on to complete the Phase II projects (most notably the Bowling and Fitness Center transformation and the Summer Village). This fee will end when these loans are fully repaid. This is projected to occur in the first quarter of 2026. If another significant aspirational project or projects is/are proposed in the future, the method of funding for the project(s) will be considered at that time. The project(s) and the funding method will be subject to a positive vote by a majority of our Members. |
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QUESTION
| Will the proposed initiation fee increases affect individuals currently on the waitlist to meet the Board of Governors? | ANSWER |
Yes, the proposed initiation fees, if approved, will apply to all future Members, regardless of their current status on the waitlist. Only when elected to Membership does one lock down initiation fees for future transfer. |
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