HOUSTON. Proposal No. I - Explanatory FINANCIAL ANALYSIS
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1 /1-;.) / HOUSTON racht CLUB t1 ( I Proposal No. I - Explanatory FINANCIAL ANALYSIS Dues Revenue 31, , , , , ,597.50* *EST Operating Overhead 12, , , , , ,307.32* Departmental Profits ( 3,696.08)L 6, , , , ,525 99'* *11 months NET PROFIT ANALYSIS Before Fees Initiation (Initiation) Fees NET , , , ,216.62)L 2, , )L 9, , , , , , , , (11 months) 15, , , DUES INCOME ANALYSIS: It would appear from the above analysis that the Club has progressed very favorably in recent years. From the standpoint of departmental operations, showing substantial profits where normal operating reports from Country, City and Yacht Clubs, show that dues income is ubed almost cont i nuousl y to support departmental losses. I ni t i at i on f ee s have dropped off sharply thi s cur r ent year and actually should not be considered in making plans for operations of the club, as this type of income is not forseeable i n any defi ni t e figure 0 Normal operations of cl ub s throughout the United States ~re considered by several major consul t i ng firms, such as Horwath & Hor wat h and Harris and'ker r & Forster, on the basis that operating ove rhead not chargeable depar t ment al wise should be borne by the due s income of the cl ub, rather than f r om the possibility of initiation fees or departmental profits 0 We are not meeting these expenses by due s but r ather by departmental profit s. Thi s results in attempted financial planning on a "hopef ul" basis rather than on sou nd bu sinesslike b as i s, and prohibits the improvement of t he cl ub in a long range program with sound financ i al b ~c k i ngo With so und cl ubhouse ope ration on whi ch to b a se t he committ ing of monies, it is felt that our club could ove r come the defic i t in dues inc ome and obligate a supstantial sum towards replac ing our remaining outmoded f acil itie s by an ad justment upwards in our dues structure. It is pr op osed and rec ommende d that our d.ues be increased $5.00 pe r month effe ctive November 1, Thi s woul d allow increased income of approximately $12,000 to $15,000 per year o This incre ase, combined wi t h the payment s previou sly p lanne d, applie d on our $12,500 air condit i oni ng note woul d allow its complete repayment by March of the comi ng year and leave t he club wi t hout obligation.
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3 -, - t woul d then be possible to al l ocat e these funds over a five year pe riod towards a project which woul d. upgrade the f aci l i t i e s of our cl ub leaving no portion i nc ompl et e. We also believe this progr am wi l l enhance the cl ub to the extent of bringing i n a sub st ant i al number of new members in t he long run and wi ll al l ow such funds as are necessary t o be allocated toward harbor and other i mprove ment s without making it ne cessary to de l ay t his program. Combining t his incre ase with mont hly b i l ling of member' s d.ue s would also make it much more conveni ent f or t he membership, in that we would not be f aced with a relatively large quarterly bill. A due s increase of this amount woul d leave the Houston Yacht Club in an enviable dues position as f ar as other area clubs are considered. Dues of which are noted below for your convenience. DUES FOR HOUSTON AREA CLUBS (all are'pl us tax) Brae Burn Country Club Bayou Club Forest Club Golfcrest Country Club Houston Country Club Houston Yacht Club Lakewood Yacht Club Lakeside Country Club Memorial Drive Country Club Pine Forest Country Club River Oaks Country Club Westwood Country Club $ monthly (Clubhouse & Pool Only) (Clubhouse & Pool Only) The Board of Trustees of your club have thoroughly studied this proposal No.1 and are recommending this to you as extremely beneficial to your club. You are urged to give this proposal your attention and to vote FOR its adoption. Should there be any portion that you do not under st and please be present at the meet ing that you might have it clarified. LOWELL LAMMERS Chairman House Committee
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5 60, m) nths Est Lm: Diffe 1~ 50, ,399.> ~::_ " ~ 40, '" :"'/.>.,,/ '".,/,;,/~ Operating Overhea< Overall Net Prior Initiation Fee s Dues Revenue... /",,/..., Estimc..., 30,000 v / "'-,? / / / , /, / /... /... /... <, " -: 20,000, / " -_.- Departmental Profits w/ / /10,000-10,000 ""X: // V <, V... r ~-- : ~ ted ence ths 82 ted enc e ths 92
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