FCC White Paper Report

improvements. For thirty-eight years of the club's forty-four-year history, member joining fees were mostly returned (on average, 80%) to the departing members. 2) In 2018, member joining fees began entering a capital reserve fund. Today, we have a balance of $3.9 million in the fund. In addition to unexpected capital needs for clubhouse repairs, these funds have been used to finance the re -grassing of the Long Mean in 2019, the addition of the pickleball court, and the addition of the back gate. Funds are being accumulated to pay for the Long Mean project scheduled for 2026. 3) Building capital reserves will take time, as 393 pre-2018 homeowners have agreements with the Club that provide approximately 40% of the new member joining fees upon sale to be reimbursed to the prior owner. 4) Capital funding for asset replacements has been lean. The monthly capital dues charge finances , replacing assets as they wear out. Before 2012, the club collected a monthly capital contribution of $120/per month, which was increased to $145 in 2013 and then raised to $290 in 2015. This charge has not increased since 2015. 1) Deferred Maintenance: Inadequate capital funding in the past has led to serious underinvestment in our facilities both maintenance and replacement. 2) Financial Burden on Current Members: In the past, underfunding has resulted in the call for collective action by the current membership to address these needs. E. Expert Assistance: Club Benchmarking (CB) is a well-respected private club industry expert that provides data-driven insights for private clubs. We have reviewed the status of our club's financial status with CB, and they have offered the following insights : D. Consequences of Early Capital Model:

1) Capital Income Deficiency :

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