State of the Club
BRC Annual Report September, 2020
There are many things of which we can be proud, but as has been the case for many families and businesses, this has been a very trying year. The COVID-19 pandemic has brought harm to our club in many ways. The virus forced a six-week shutdown, imposed many restrictions when operations were restored, strained many relationships as we all sought the “right” answers, and significantly damaged our revenue. Revenue for the fiscal year just completed is down $212K (25%) in comparison to the prior year. The key drivers were losses in Clinics and Camps ($73K – 60%), Membership Dues ($60K – 12%), and Venue Rental ($32K – 64%). In addition to the club, the income for our Director of Tennis was severely impacted – a situation that was compounded when he went out with a serious injury in late July.
Despite those hardships, there are many bright spots on which to report. The revenue losses were largely mitigated with strong financial management. Payroll was reduced by $81K and the conversion to LED lights saved us $35K in electric power. In tandem with other cost-saving measures, the reduction in our net income was limited to $27K (19%). That left us with a very solid $113K of net income for the year. Our asset sheet is in good order. We have maintained approximately $300K in cash reserves. We have three blocks of debt that total $335K. These debts were incurred to complete the major capital projects over the past two years. There is $150K @ 2.75% for 30 years, $150K @ 0.00% for 8 years, and $35K @ 5.00% for one year.
Our membership has been quite stable when one considers the events of the past several months. We want to again thank all of those who were able and chose to support the club by paying full dues during the shutdown. That support was critical to our continuing good financial health. We have been blessed that our members and staff have been relatively untouched by the virus and trust that will continue to be true. While the right answers have not always been evident, our strategy has been to prioritize the safety of our members and to cooperate with public health officials.
Three important capital projects were completed in the last year. The LED conversion provided the savings mentioned above while improving the lighting level on what were already some of the brightest courts in the state. The women’s locker room was refurbished and sets a new aesthetic standard for the club. The largest project, Phase II, replaced Courts 1, 2, and Pickleball while giving a facelift to the entire northwest corner of the club. None of this would have been possible without the significant contribution of our many volunteers. With apologies in advance to any that may be overlooked, special thanks are owed to Rick Tucker, Pete and Debi Bozanich, Edgar Pankey, Linette Holliday, Steve Holloway, Tracy Burrell, and Paul Yanez.
There is more progress to be made. Phase II will not be finished until the remodeling of the Pro Shop and some remedial work on the courts (scheduled for the week of October 5) is completed. The next project on the horizon is the building of the new restroom / storage facility and the beautification of the trash area next to Court 6. An unexpected result of the pandemic has been the implementation of a reservation system that has proven to be quite popular. Work is underway to make that a more user-friendly and less labor-intensive process.
We have weathered a great storm this year. I am pleased to report that we have all the ingredients for a bright future – a capable staff, devoted members, solid finances, and a beautiful facility. Thank you for the opportunity to have served as your President the past two years.