2022 February Newsletter - Page 22

FINANCE COMMITTEE
Budget Update from the Finance Committee While our management company , Troon , completes work on 2021 year-end , we will review the 2022 budget in this article . The board approved a budget with revenues of $ 1,672,00 , which is about $ 200,000 more than 2021 revenue . The focus in revenue growth is three-fold :
1 . Golf : increased rates for public play . Adjusted pricing for outside events to reflect current costs and major improvements to course playing conditions . Our golf course is getting a great reputation , and we need to capitalize on that .
2 . Food & Beverage : changes to dining minimums and addition of the Pool Gate Cafe . The café will be enjoyed by families at the pool , as well as golfers on the turn .
3 . Member Dues : increase of approximately 8 % plus expectations for net new member growth . In 2021 , the club gained 16 net new members . In 2020 , we lost 27 net members . Our plan is to focus on growth in membership as we emerge from COVID .
On the expense side of the budget , the pressure of higher food and labor costs has been factored . Minimum wage is now $ 11 . It takes more than a village to run LGCC , and the club needs to acknowledge that we need to pay decent wages to retain quality staffing and management . Other expenses in the budget are on track with previous years ; there are not many areas where the club can belt-tighten after two years of trimming costs .
In summary for 2022 , expenses are budgeted to exceed revenues . Although not optimal , this is a realistic approach supported by numbers generated by management to implement into operations . A loss doesn ’ t sound great but with a realistic budget and cash controls , the club should be on track to break-even in another year or two . You can ’ t dig out of some covid holes in one year . 2022 is a year to continue to make improvements , grow membership , and have fun . Thanks for your support , suggestions , and spending money at the club .
By :

Natalie Garvis

Finance Committee Chair
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