As the incoming Executive Committee, one of our goals is transparency (i.e. keeping membership up-to-date on the financial condition of the club and other issues). We hope by doing this we can stop some of the rumors that are very much off base regarding the financial condition of the club, as well as give some reasons behind decisions being made by the board.
First and foremost, the Club is financially stable. Rumors regarding its financial stability are completely false and unfounded. In fact, our financial position today is better than it has been in the past.
However, due to spending above our means in the past, falling membership, and previously using loans from the banks as opposed to member assessments to cover the excess expenses, the club is in a challenging position of delivering the value that members were used to at a price they feel is fair. Currently, we owe over $6,300,000, which translates into over $450,000 per year in principle and interest payments to the bank. If that money could be used to enhance the member experience and capital improvements, what a difference it would be.
Our operating year is a fiscal year running May 1 - April 30. The recent assessment you received and paid over the May/June/July period covered most of the previous year(s) operating losses and brought the club back to a break-even cash flow position. In addition to the assessment, there were several club members who lent the club approximately $130,000 as a no interest loan, payable when the land sale occurs and funds are available. This was used to reduce the amount of the assessment necessary to fund the deficit we had accrued, as well as the amount members would have to pay. We personally would like to thank those members for their commitment to WCC. They have shown a willingness to help the club in any way they can in order to make it successful into the future. We believe most members share our vision of an active and thriving club and are willing to help make that possible.
However, the current budget for the current/upcoming year (the 2018-2019 fiscal year), although close to break-even, fell short on the monthly cash-flow demands because of how the profits fall within the year and the fact that the payment for services you receive occur 15-45 days after you receive them. We still need to make weekly payments on labor and to vendors to cover our expenses even though money for these expenses are paid 15-45 days later. A simple solution was to ask 40 members to pay their monthly member dues 6 months in advance to even out the cash flow coming in to the club. Again, it was amazing how members were willing to help when asked; we extend a big thank you to them as well.
A lot of effort went into creating the current budget, debating how to get as close to break-even as possible without cutting back services to which we have grown accustomed. The current board is committed to running a financially sound club and will continue to factor that in to our decisions. We have made it our goals to spend no more money than we have, hopefully have no assessment at the end of the fiscal year, and hopefully no dues increase for the year 2019-2020. We believe until the sale of the land or the membership increases (which will provide us more funds to pay down the debt), we need to be fiscally responsible and make the tough decisions to not incur any more debt on the membership's behalf.
Our members are our highest priority; as we make decisions on how to balance the budget, we know we need to ensure the membership feels there is value for that they are paying. Hopefully, we can juggle decisions to keep everyone happy.
We are lucky to have a great management team led by Chris Murray, Oliver Leoni, Steve Potter, Executive Chef Richard Beckel, Michael Wade, and Claude England. They are all committed to increasing value for the membership without adding to the deficit. Things such as better service in the dining room through additional training, attractively priced dining specials, and a cleaner and fresher over all club appearance are just a few of their goals. If you have an issue with anything at the Club, please bring it to their attention by politely speaking with or e-mailing them. It does no good complaining to anyone else or to be disrespectful to those who want to help.
How You, Our Members, Can Help:
You might be wondering how you can help. Our current budget, although close to break-even, does not have a lot of leeway for variances. We need to grow our revenue line to make a difference. New members are obviously one source. Our recently released new member marketing plan has just started to show some results.
We are happy to report that we have at least 10 new members over what we budgeted for, and we anticipate at least another 10-20 before the end of the fiscal year. However, if every member would dine at the club at least 1 more time per month, attend 1 special event, or hold your business meetings or holiday parties with us, that would go a long way to growing that top line also. A good place to start is this weekend, by making a reservation to attend the Mid-summer Party on Saturday, July 14th.
With the rezoning of our extra land in 2018, we are closer to its sale ($13,000,000+) than we have ever been. Although important to our long-term future, it is not a necessity for the immediate success of the club. We can continue to operate the club as a break-even venture and do even better than that with a few more new members and a little more use by current members. When we are finally able to sell the land, it should provide enough money to pay off our debt (which will save the club about $450,000/year in principle and interest), provide funds to create a reserve for emergencies, and start on a well-thought-out capital improvement plan.
In closing, Woodholme is on a fast track to financial stability and has a bright, promising future. It has really incredible amenities to be enjoyed year round by all of our members. We hope you can now see where we are coming from and what we hope to accomplish in the short term. We also hope this has squashed any untrue rumors. As always, we are available to answers your questions and listen to your ideas.
Best,
The Executive Committee
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