FCC White Paper Report

to “pay as they go” and new members to “assume” those payments when they purchase the homes of departing members and join the Club. The members’ home values in communities like Fiddlesticks usually experience a positive increase with new investment in Club facilities. • One-Time Member Assessments—This funding source provides the needed available capital all at once but places the burden on current members and not new members who will use the Club in the future. There are reasons for this to be an option, but at this point in time, a one-time member assessment has been excluded. • The Board aims to fund future capital plans by carefully blending net entry fee revenues with debt/borrowing, repaid by a monthly member renovation capital contribution. Like the Loch Ness model, all current members pay the monthly contribution, and the obligation to make this payment does not continue when the membership ends. • As previously shared with the membership, $30 million in borrowing, at 5.5% interest, would result in a $225 monthly member charge over ten years. This is based on the assumption that the project will start in 2027, and member charges will not begin until then. Every additional million dollars in borrowing would require an additional monthly charge of $18 per member. For example, $35 million in borrowing would result in an estimated monthly charge of $315, $38 million in borrowing would result in an estimated monthly charge of $377, and $40 million in borrowing would result in an estimated monthly charge of $405. and $42 million in borrowing would result in an estimated monthly charge of $441. Once again, these amounts are provided to give a range of estimates and should not be considered definitive as the final scope of a plan, including timing, funding, and other factors, are determined. IX. Impact of Delays Delaying the necessary project would result in: A. Continuing Life Safety /Code Risks: We can no longer delay correcting our ADA and Code Compliance issues related to Member and Employee Safety. These items must be corrected.

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