KYC - Special General Meeting - 2014-09-28
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Transcript of KYC - Special General Meeting - 2014-09-28
Special General MeetingLong Term Financial Planning
September 28th , 2014
1896-1996: a vision towards 2046
Adoption of the Agenda Reading of Minutes from last AGM
(if requested) Introduction Motions
Motion #1 (Discussion/Voting) Motion #2 (Discussion/Voting)
Concluding Remarks Adjournment
Agenda
On August 20th, 2014, the board unanimously approved two motions to be brought to the membership at a SGM
The Topics for discussion are a change in the membership fees and the enactment of an Entrance Fee.
Notice of Meeting
Questions & Discussion taken from the central microphone
Voting
Procedural Notes
Protect our investmentGive the Board Direction
We need to plan over a longer time cycle than typical board cycles
Repair our aging infrastructureLeave the club better they we found it
Ensure the legacy of KYC
Why do we need a Strategic Plan? March 2011
Strategic Plan: Review
A phased plan:
1. Dock at Jemmett’s Landing (2012)
2. Fuel Dock (2012)
3. Expand and enhance our Harbour (2017?)
4. Harbour Remediation (2017 and beyond)
5. Saint’s Rest Renovation (future)
6. Clubhouse Renovation (future)
Harbour Project Grow membership, establish bigger base for future capital
projects Remediation Assessment indicated more work needed that
anticipated.
Required Remediation work put overall budget in excess of our borrowing capabilities
Requirements from our Preferred Lender: Sufficient “as built” appraisal to support the requested loan Ability to sustain the payments. Sufficient initial capital
Harbour Project
The scope of Capital requirements (short and long term) and now better understood Clubhouse & foundation Harbour structures
BreakwallCenter pierSheet pileNorth basinGas dock
Saints Rest Fleet maintenance and renewal etc.
Capital Needs
Annual financial statement look good, but don’t tell the whole story.
Do not into account the state of our infrastructure Capital reserve fund no longer growing due to
operational demands Well established lifespans for docks, sheet pile, and other
structures, require long term planning for replacement
Infrastructure maintenance in the past has generally been reactive and patchwork
Financial Capacity
We have been falling behind for years
It’s time to catch up and get back on track
Financial Capacity
• For calculation purposes, the annual membership fee is composed of two components; a Base Membership amount, and a Capital Improvement amount.
• For the 2015-2016 membership year, the Base Membership amount for Family and Single membership will be calculated at 24% over the 2014-2015 membership fees.
• The Base Membership amount for other categories will be calculated at 4% over the 2014-2015 membership fees.
• The Capital Improvement amount will be calculated as a percentage of the Base Membership amount on an annual ongoing basis. For the 2015-2016 membership year, the percentage would be as follows:
• Family & Single: 17%• All other Membership categories: 10%
Current Proposal
Current Proposal (cont.)
CategoryMembership Fee 2014
Base Membership amount
Capital Improvem
ent amount
Total proposed
Membership Fee 2015
% Increa
se
Family$
810$ 1,004
$ 171
$ 1,175
45%
Single$
599$
743$
126$
86945%
Associate$
327$
340$
34$
37414%
with Nominee
$ 450
$ 468
$ 47
$ 514
14%
Non-Resident$
197$
205$
20$
22514%
Junior$
83$
86$
9$
9413%
Temporary$
140$
146$
15$
16014%
Corporate$ 1,660
$ 1,726
$ 173
$ 1,899
14%
Entrance Fees
Only applies to joining or upgrading
Equivalent to a percentage of membership fees Approximately 150% of fees
Payment plan to distribute over a few years Possibly 3- years
Propose implementing in 2016 Why 2016?
Marketing: we would have one year to externally market: “Join now before the new entrance fee begins”
Incentive to upgrade membership before 2016 to avoid initiation fees It would also provide disincentive for current members to leave as they would
be subject to the new entrance fee if/when the rejoin.
Current Proposal (cont.)
Other Targets
Membership Growth Associates: 10%/year for 5 years Other categories: 2%/year for 5 years Modest growth or stable Membership after that Other sources of funding (Trillium)
Increase Value for Members Continue F&B expansion Continue to Improve Facilities
Tents, furniture, etc. New Initiatives
Swim Raft, Paddleboard Club 420 Fleet? more
Category
Difference over
Projected (Monthly)
Family $ 27Single $ 20Associate $ 3 With Nominee $ 4
What Will is Cost You?
What will is cost?
For boat owners who keep their boat at the club (30’), it would represent a less than 10% increase on what they would spend at the club
Parameters: Parameters as noted above (growth, fees, capital
improvement fund, etc.)
Where does that get us (financially)? Harbour expansion & remediation: completed in
spring 2017 Next Phase of remediation: 2027?
Projections
Projections (cont.)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Capital Assessment
Membership Fees
Harbour Fees
Dock Deposit
Capital Improvement &Replacement Fund
Capital Expenditures
Re
me
dia
tio
n #
2
Capital Improvement &Replacement Fund
Har
bou
r &
Rem
edia
tion
#1
Status Quo
Facilities remain substandard and uncompetitive and continue to degrade
Docks, electrical, clubhouse, etc.
Risk of major failure continues to increase
Get back on Course
Plan to address known infrastructure issues
Reduce the risk of major failure
Provide competitive facilities
What Are Our Choices?
Capital Improvement Fund
Looking Forward
Motions
• Be it resolved that the following changes to membership fees be approved:
• For calculation purposes, the annual membership fee is composed of two components; a Base Membership amount, and a Capital Improvement amount.
• For the 2015-2016 membership year, the Base Membership amount for Family and Single membership will be calculated at 24% over the 2014-2015 membership fees.
• The Base Membership amount for other categories will be calculated at 4% over the 2014-2015 membership fees.
• The Capital Improvement amount will be calculated as a percentage of the Base Membership amount on an annual ongoing basis. For the 2015-2016 membership year, the percentage would be as follows:
• Family & Single: 17%• All other Membership categories: 10%
Motion #1
• The following table represents the proposed fees for the 2015-2016 membership year:
Motion #1 (cont.)
CategoryMembership Fee 2014
Base Membership amount
Capital Improvem
ent amount
Total proposed
Membership Fee 2015
% Increa
se
Family $ 810
$ 1,004
$ 171
$ 1,175 45%
Single $ 599
$ 743
$ 126
$ 869 45%
Associate $ 327
$ 340
$ 34
$ 374 14%
with Nominee
$ 450
$ 468
$ 47
$ 514 14%
Non-Resident
$ 197
$ 205
$ 20
$ 225 14%
Junior $ 83
$ 86
$ 9
$ 94 13%
Temporary $ 140
$ 146
$ 15
$ 160 14%
Corporate $ 1,660
$ 1,726
$ 173
$ 1,899 14%
Explanatory Notes (not part of motion):
• The Base Membership amount would be subject to annual cost of living increases in subsequent years.
• The Capital Improvement amount percentages could be subject to change in future years and would be brought, by the board, to each future AGM for approval, but is intended to remain relatively constant.
• The lesser changes to the categories other than Family and Single may be brought into alignment in future years.
• Future cost of living increases would be calculated approximately at CPI + 2%, applied to the Base Membership amount, and would be brought, by the board, to each future AGM for approval.
Motion #1 (notes)
Be it resolved that, beginning in the 2016-2017 membership year, an Entrance Fee be enacted at a rate of 150% of the Base Membership amount as provided for in Article 3 (i) of the KYC By-Laws
Motion #2
Category Fees 2015Example Entrance
Fee*
Family $ 1,175 $ 1,507
Single $ 869 $ 1,114
Associate $ 374 $ 510
With Nominee $ 514 $ 702
Non-Resident $ 225 $ 307
Junior $ 94 $ 129
Temporary $ 160 $ 218
Corporate $ 1,899 $ 2,590
*Note: this would not apply for the 2015-2016 membership year, and thus is presented only an example.
Explanatory Notes (not part of motion):
• The table above is only an example of what the Entrance Fee would look like if they were enacted this year. The actual fees for 2016-2017 membership year would be presented at the AGM in 2015 and would be a based on the calculation proposed above.
• The board intends to enact policy such that Entrance Fees could be paid in installments over a period of a few years in order to minimize the financial impact to new members.
• Existing members would not be subject to Entrance Fees, but any member may be subject to an Entrance Fee differential upon upgrading to higher level membership
Motion #2 (notes)
Adjournment