YOUR INPUT IS NEEDED | PLEASE VOTE

I want to thank everyone who attended last week’s membership meeting, both virtually and in person, regarding the capital improvement plans. It was a great meeting, and I appreciate the feedback we have received. Attached is a video of the meeting for those of you who did not attend or would like to watch me sweat again. Special thanks to Wayne Romanowski, a new CCC member, for both live streaming and recording the meeting! 

I know everyone is preoccupied with the upcoming Thanksgiving holiday, but I am writing to you today to encourage you to cast your vote as soon as possible for the proposed capital improvement plan and the related contribution. I have had a couple of members tell me they had not voted because they are fully supportive of the proposal and would pay any amount up front. Conversely, I had one member who told me they were planning to drop, so it did not matter if they voted. While I appreciate the sentiments of these members, we need everyone to vote so we have a complete picture of the memberships’ feelings on the proposal so the Board of Governors (BOG) can make an informed decision on the capital improvement plan at its next meeting. 

I also wanted to take a minute to address questions and feedback the BOG has received since the meeting in hopes it will help you make an informed decision on the proposal. 

What is the Employee Retention Credit (ERC). During COVID-19, the federal government created a program to incentivize organizations to keep staff employed during the pandemic. Conestoga maintained many of its employees during the pandemic, and the BOG at the time was very forward-thinking in applying for these credits for 2020, 2021 and 2022. It took almost three years, but in June we received checks from the government for slightly over $500,000, which included accrued interest. 

Club’s Current Cash Balance and the ERC Tax Credit Money. Some members had questions about how much cash the club currently has on hand and the intended use for the ERC money. The Club has approximately $720,000 on hand, of which about $520,000 is ERC money (principal and interest) and the remaining $200,000 is in our operating account, which comes from dues and F&B revenue. The BOG has allocated 50% of the ERC money towards the capital improvements. The remaining 50% will be held in a rainy-day fund for emergencies, which we need to have to ensure the club does not return to the days of operating without any financial cushion. We have put the ERC funds in a separate bank account from our operating account and all future capital contributions, including assessments and future initiation fees, will be deposited into this capital account. The $200,000 in the operating account, which is the club’s checking account, is used to pay our staff and our bills. We build up cash in our operating account this time of year as the club’s revenues drop during the first calendar quarter because club usage declines and the club is closed for January, so we need this money to operate. Operating funds are not being used for the capital improvements project. 

Assessment Payment Plans. Some members have asked if they decide to do the payment plan, and in the event they should leave the club or transfer from golf to social member due to health or other reasons before they have paid the full amount, would they be required to pay the remaining assessment? The answer is NO. We created the payment plans so members who were not sure if they would still be playing golf or living in the area in five years could still participate in the assessment without being locked in. While the BOG hopes that all members could pay the full amount up front, we understand each member’s situation is different, and we created these plans to make the assessment more affordable.  

Conestoga’s Golf Membership Structure. Some people have asked whether it is more equitable to charge single golfers a lower rate than family members. As I stated at the meeting, the BOG did not think a bifurcation of the single and family memberships was warranted at this time because our one-class membership dues are still lower than most other local club’s single golf membership dues. The BOG will continue to evaluate this structure every year to make sure the club remains competitive. On a personal note, I am a single golfer, as are most members of the BOG, so while we personally would benefit financially from a tiered membership structure, we believe the current structure is the most appropriate for the club at this time.  

What are the Board’s Plans for the Long-Term Debt (Fulton Loan). The club’s long-term debt comes due in March 2027. As I explained at the meeting, the BOG is actively working with our current lender as well as other potential lenders on a plan to address the long-term debt. The lenders we have spoken to are supportive of the proposed capital improvement plan as it will make the club stronger and more attractive to new members. In the end, all a lender wants is to make sure the borrower can pay off its loan, so investing in the club and its infrastructure is viewed positively by lenders. While I cannot tell you what exactly our plans are right now for the long-term debt, I can promise you that I will not sign onto any plan that does not include a set amortization of the full debt over a reasonable period of time! 

I hope this answers any question you may have, but please feel free to contact me at [email protected] if you have any further questions or concerns. I wish all of you (and our incredible club staff) a Happy Thanksgiving!! 

Best, 

Chris