Fox Valley Golf Club
Board of Directors Meeting Minutes
Monday August 27, 2012 7:30pm Fox Valley Golf Club
Present: Doug West, Mike Zwiebel, Dick Rasmussen, Janet Charlesworth, Steve Nockerts, Jamie Loehnis, Monica Renkens, Scott Bushman, Ed Bekx, Rich Scott
Excused: Jeff Maulick, Neal Roberts
Absent: None
Minutes: Minutes approved
Correspondence: WCCA reciprocal week is scheduled for the last week in September. The club received a thank you letter form the Evans Scholars Foundation for the proceeds of our annual Evans Scholar day.
Treasurer Report: The finance committee submitted the following report:
Fox Valley Golf Club
Treasurer’s Report
August 20, 2012
From: Rich Scott
Treasurer
The treasurer’s report is for the first nine months of fiscal 2012 which are November through July of 2012.
Executive Summary:
Total Gross Revenue for the year 2012 when compared to 2011 is about $96,000 over 2011, with the major reasons being bar revenue is up $19,000, pro shop merchandise sales up $25,000, dues up $16,000, green fees up $16,000, dining up $8,000, and cart rental up $8,000.
Total net income for 2012 when compared to 2011 is about $119,000 higher than last year, and taking out sales of fixed assets which is $33,000, the operating net income for the club is up $86,000.
Total dues revenue for 2012 when compared to 2011 is $16,600 over last year.
Bar and dining total revenue is up $27,500 from last year at this time, and net income for bar and dining is $21,000 versus last year at this time we had a loss of $27,400. That is a $48,000 turn around from the prior year.
Green Fees are up from last year at this time about $16,600.
We have been able to keep in line our costs for the various other departments.
Detail Report:
We have dues revenue of approximately $500,200 adjusted for all the various memberships. Last year total dues revenue for the entire year was $484,000. When factoring in the buddy system and the increase membership from the Business Card Membership we have increased the membership numbers and improved that area of club operations.
Comparing 2012 to 2011 through the first nine months of our fiscal year, our net income is about $119,000 ahead. In the month of July 2012 we had a $23,000 improvement in our bottom line alone over last year, with the bulk of those gains coming from the Pro shop area, and a better performance in dining. Our total gross revenue currently is up about $96,000. With substantial gains across the board in bar revenue up $19,000, pro shop merchandise sales up $25,000, dues up $16,000, green fees up $16,000, dining up $8,000, and cart rental up $8,000.
The bar area has produced a profit for the first nine months of about $32,800. Last year the bar area had a profit of about $20,700 at this time. When comparing July of 2012 to July of 2011 the bar produced $950 more in profit.
In the dining area, we have a loss of about $11,800 in 2012 versus a loss in 2011 of $48,100. Our revenue in July of 2011 was up about $340 from 2011, but our costs have improved dramatically. Our food inventory was running about $3,400 higher than last year, so we may have some adjustments to make once we have a good physical inventory on the food. Our cost of sales with regard to food for the year is running around 47% and even if I had to make a $3,400 adjustment to cost of sales food, the number will still come in at just under 52%. Last year the cost of food number was coming in at around 86% at this time. We definitely have been able to turn that operation around.
When we look at bar and dining as one operation, we are at a profit right now in 2012 of $21,000 versus a loss of $27,400 in 2011. It appears that we have this area of our club running very well in 2012.
Course costs for the first nine months of 2012 are about $11,800 less than last year. In the pro shop area we increased our net income over last by about $14,700 for the first nine months of 2012. Pro Shop merchandise sales are up about $25,000 in 2012. For the year to date we are about $14,700 ahead in net income. We have about $30,000 in merchandise we are sitting on at the club and we will need to move some of that merchandise by the end of the gold season. In the administration area of the club we are up about $7,000 over last years costs, but that was expected when we did the budget for 2012.
Our current line of credit at July 31, 2011 was $55,000 and we had cash of $25,000. On July 31, 2012 we have cash of about $21,400, and we are in our line of credit $8,000. One thing we do need to mention is that we did buy the new cart fleet in June of 2012 and members provided the club with $70,000 to help finance the carts for the next three years. Our long term debt therefore is up about $18,500 as this time over last year. However our total debt (Line of credit, mortgage, and member notes) is actually down about $29,000 for the year. My guess is that we will hopefully for this year pay down $40,000 to $45,000 of total debt for fiscal 2012, which is still an accomplishment considering we purchase the new cart fleet for a net of $68,000. We could even do better than that depending how our August and September months shake out in 2012.
Summary:
July 31, 2012 is a very good indicator of where the club will end up for the fiscal 2012 year. We are nine months into the year now and have a pretty good idea of where we will be as far as dues and established club revenue.
If I had to venture a guess on where we will end up at the end of this year for 2012, I think we will have a net income for the year of at least $70,000 for the year, with $33,000 of that being from gain on sale of equipment, which means our operating profit will be about $35,000 to $40,000. I think conservatively we can hit that number. If things go very well the rest of the year, it could be possible we could have a net profit of around $100,000. Therefore I think we will finish somewhere in the $70,000 to $100,000 range. From a cash flow standpoint, I think we will be in a positive position as we will pay down debt in the $40,000 to $70,000 range. I think this year with the early start, the great weather, and if the weather continues to hold, we would have one of the best years the club has ever had.
Greens and Grounds: Scott mentioned that the club is in need of a self-contained rough cutter. A few of our tractors are getting old and are wearing out. Replacing one old tractor with a rough cutter would greatly benefit the club. The board discussed capital improvement projects which will have to be addressed. These include fixing bridges, the hedge around the practice green, and planting areas. There was also discussion regarding the pond on hole #8. Aerifying of the tees will take place on September 10th and deep tinning of the greens will take place on September 24th.
Golf Activities: Steve reported that 2859 rounds were played in July. We are up around 2000 rounds for the year. Many of the bag staff will be returning to school soon and staffing issues may arise. We are asking members to have patience with the reduced staff. Upcoming September events include the Club and Class, night golf and the Mr. & Mrs. Club Championship. Fall sales will be planned in the pro shop.
Bar and Dining: Profits are up and things look good. Steve is doing an excellent job handling bar and dining issues and profits.
Building Committee: The board had a discussion regarding the parking lot.
Policy, Bylaws and Member Service Committee: The board had a discussion regarding the guest pass policy and the dress code policy.
Member Relations Committee: The $999 remainder of the year deal, the $1000 down lock in rate deal and preview days will be available again this year.
Personnel: No report
Old Business: None
New Business: Preliminary work on getting nominees to run for the board should begin to take place.
Next Meeting: Next Meeting Monday, October 1, 2012 7:30 at the club.
Adjourn: Motion to adjourn at 9:00pm by Jamie with a second by Dick. M/C.
Executive Session: None
Respectfully Submitted:
Edward Bekx
Secretary to the Board