John’ s Island Club, Inc. Notes to Financial Statements
Note 7. Functional Expenses( Continued)
Expenses by functional and natural classification consist of the following for the year ended December 31, 2024:
Program Activities |
Food and |
Sports and |
Supporting |
|
Beverage |
Recreation |
Activities |
Total |
($ in thousands) |
Cost of sales |
$ |
4,761 |
$ |
1,518 |
$ |
- |
$ |
6,279 |
Payroll and related |
|
12,541 |
|
9,579 |
|
9,942 |
|
32,062 |
Supplies, services and other |
|
2,556 |
|
10,024 |
|
8,866 |
|
21,446 |
Total operating expenses |
|
19,858 |
|
21,121 |
|
18,808 |
|
59,787 |
Non-operating expenses: Interest expense |
- |
- |
49 |
49 |
Other expenses |
- |
- |
668 |
668 |
$ |
19,858 |
$ |
21,121 |
$ |
19,525 |
$ |
60,504 |
Note 8. Membership Certificates
The Club’ s bylaws require all members to acquire an Equity Membership certificate. Under the terms of the Club’ s bylaws, an Equity Member shall not sell or otherwise transfer a membership other than to the Club. The Club will be obligated to repurchase an Equity Membership only if an individual, who is acceptable to the Club, is willing to acquire the retiring member’ s membership or a higher category of membership and has paid the required membership contribution. The Club may, but shall not be required to, repurchase a membership prior to another individual acquiring a member’ s membership. Owner members may arrange through the Club for the reissue of a membership certificate to the buyer of the member’ s residential unit or lot in John’ s Island, if the buyer has been approved for membership in the Club. The amount to be paid to a resigning member upon transfer of their membership is dependent upon the date the membership was purchased and is defined in the Club’ s governing membership documents. Any amount retained by the Club is dedicated to funding capital projects. In fiscal year 2023, the Club’ s membership approved a bylaw change that eliminates any refund to a retiring member who joins the Club after December 1, 2023. Resigning members remain responsible for dues and charges for two calendar years following the effective date of resignation or until the membership is sold, whichever is first. Such members have use of the Club if in good standing. All member certificates on the resignation queue paid dues in 2025 and 2024.
Since January 1, 2000, new members are required to pay an Initial Capital Contribution. The payments for the Initial Capital Contribution are not subject to refund and will only be used for capital projects. The Board determines the amount of the Initial Capital Contribution.
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