Members are of course noticing the many projects recently completed at the golf club and, inevitably, the question arises “how are we going to pay for all this?”
We are going to borrow, as approved at the AGM, $120,000 for the cart shed building. We are adding this to our mortgage, to be paid off, usually at an accelerated rate, as income permits. Our mortgage is at a historically low level and now is a good time to borrow, as rates are low. The cart shed building came in slightly under budget, and included the building (Stump Stove Industries), the electrical service and wiring (Murphy Electric) (including an upgrade to our main service, as demanded by Fortis, from the old “farm service” that we’ve been operating off for years), lockers (MW Millwork) and security system (C Systems Security). This building insures that our carts, a major club investment, are protected and given the excellent maintenance our crew provides, they should last us well. The carts are a major source of income for the club and pay for themselves over time. Over the years, Randy’s entire fleet has and will be replaced by new Yamaha (fuel injected) carts. The last eight carts are scheduled for trade in for new ones this year.
The Golf Course produces revenue that we put back into the course every year. In recent years, this has amounted to around $80,000 per year which we use for required and planned on course upgrades and maintenance and unusual events. There are always a few surprises out there that need to be dealt with (for example, the river pump required a major overhaul over the winter, and is now back to top operating condition, but the bill was over $10,000). This past year, we had over $100,000 to re-invest, as Dennis did very well in the clubhouse, contributing to our overall income. The focus for the near term will be to pay off club house improvements, as funds become available. We have used this system for years to pay for whatever improvements we’ve made.
Clubhouse improvements included the deck enclosure, an upgrade and modernization of the heating and cooling system, and renovation of the downstairs bathrooms. The deck enclosure was to provide increased comfort for the members, to facilitate club functions, for increased seating, smoother kitchen operations for food serving, and provide an area for private functions, which are, again, a source of income for the club. These events contribute to Club revenues, and hopefully, with the new private space, will be less disruptive for the general membership.
The deck enclosure, ably done by Robert Construction, included reinforcing under the deck (required by the building inspector), framing, windows and doors, drywall and painting, for $38,000, close to the estimate. There were additional electrical costs of $7,000 (Safcan Electrical) and $7,700 for carpeting the entire clubhouse.
The upgrade to the heating and cooling system has been long overdue. Our old baseboards were constantly blowing breakers, as they were inadequate and inefficient for heating the space that they covered. The swamp cooler was requiring more and more maintenance, was very noisy, and provided uneven cooling at best, not to mention the health risks. The new system, installed by All Elements Industries, came in on budget ($25,000), and will reduce our large power bills.
The bathroom upgrades downstairs were a response to member complaints that we were neglecting what was most in need of repair. We agreed that the old bathrooms were in a sorry state, and decided to make that part of the project sooner rather than later. Our contractor, Jeff Seville, did an excellent job, on budget (around $20,000 in total).
Whew! Yes, it’s a lot of money. As previously stated this will be paid off out of revenue generated this year, and likely next. It will remain our focus until it’s done. There are always more projects than there is money. As always, there are still projects proposed and ongoing. We are not yet done in the clubhouse, as further renovations to the basement spaces, office, kitchen storage area, and beverage delivery system are still in order. We would like to replace the covered outside area that we lost when we closed in the deck and provide shaded outside seating areas (there are a few options being considered in this regard). This is all part of ongoing planning, but we need pause to see how the year goes before proceeding further.
Len Mosher – Chair Finance Committee.
Tim Park – Member
Doug Vance – Member
Ed Loseth – Member
Don Vaillancourt – Member