STRATEGIC PLAN
SUMMARY
2017 - 2021
SPECIAL THANKS TO OUR
2016 STRATEGIC PLANNING COMMITTEE
BARBARA WILLIS, CHAIR
GEOFF DAVIES
PAUL BRISSON
DOUG DAVIS
JEFF DOTY
FRANK LONGO
PATTY MACKENZIE
JAY NASH
KATHLEEN SLAUGHTER
MARTY THRASHER
JON NUSINK, C.O.O.
2016 BOARD OF DIRECTORS
GEOFF DAVIES, PRESIDENT
BARBARA WILLIS, FIRST VICE PRESIDENT
JOHN VANDER HOEVEN, SECOND VICE PRESIDENT
GLENN JONES, PAST PRESIDENT
NORM THOMPSON
MARCIA ROBERTS
ANNE TOAL
GORDON MACKENZIE
DOUG DAVIS
GLENN MACKINNON
CATHY PURDOM
JON NUSINK, C.O.O.
TABLE OF
CONTENTS
STRATEGIC PLAN SUMMARY
INTRODUCTION - 03
BACKGROUND - 04
OVERVIEW OF THE MARKET - 06
OPERATIONAL REVIEW - 07
MARKETING AND COMMUNICATION PLAN - 08
MEMBER SURVEY RESULTS - 09
GOVERNANCE - 10
VISION AND MISSION - 11
STRATEGIC PILLARS - 13
STRATEGIC OBJECTIVES AND ACTION PLAN FOR FY 2017 - 15
OVERVIEW OF FINANCIAL IMPACT - 21
CONCLUSION - 25
01 STRATEGIC PLAN SUMMARY
strategic
(strəˈtējik), adjective
relating to the identification of long-term or overall
aims and interests and the means of achieving them
02 STRATEGIC PLAN SUMMARY
In November 2015, the Board of Directors (“the Board”) of the London Hunt and
Country Club (“the Club”) initiated a comprehensive strategic planning review. The
Board retained Global Golf Advisors Inc. (“GGA”) to provide industry knowledge and
expertise to the planning process and facilitate development of a new strategic plan
for the Club.
This review confirmed the Club as a nationally recognized leader within the private
club industry in Canada and well positioned for continued success. The Club compares
favourably with other clubs within the immediate South Western Ontario region. Given
the exceptional golf and tennis facilities, recent enhancement to the clubhouse
and expanded amenities, the Club will remain competitive within the market in the
coming years and has the potential to attract new members. Further, the Club is well
managed, governed and is in sound financial health.
Building on these strengths, the planning process highlighted the need for continued
attention to the needs and expectations of the membership, sustaining the Club assets
and anticipating trends and evolution within the industry. To this end, the Board has
identified six key areas for strategic focus in the coming years:
1. Building a robust and vibrant membership to take the Club into the future;
2. Maintaining prudent budget management and capital planning;
3. Extending the brand reach of the Club through consistent and continuous
communication of key attributes;
4. Maintaining and consistently improving the Club’s capital assets and amenity
profile;
5. Ensuring appropriate operational management and enhancing capability for
monitoring, analyzing and adjusting to member utilization and expectations, and
6. Enhancing the Club governance and reporting model.
The following report summarizes the highlights of the planning process, key findings
and the strategic action plan for 2017. The action plan includes specific areas for
improvement and further review during the coming year. The Board is committed to
implementing this plan and monitoring progress toward a preferred future.
INTRODUCTION
03 STRATEGIC PLAN SUMMARY
The most recent strategic plan,
developed in 2008, provided direction
for the Board and management in further
developing family focused programs
and services as well as undertaking
key capital projects including the golf
course practice facilities and clubhouse
redevelopment. The current Board
determined that the Club now needed
a renewed strategic plan to identify the
future direction and priorities for the
Club over the next three to five years,
guide planning and decision making
into the future and identify the resources
required to achieve the strategic goals.
BACKGROUND
04 STRATEGIC PLAN SUMMARY
The Board constituted a Strategic
Planning Committee to undertake the
review and retained GGA to assist the
Committee and the Board. The planning
process included listening to members,
gathering detailed Club and market
information, review and analysis of
information, and solicitation of member
feedback through a strategic planning
survey (“Member Survey”). On behalf
of the Board and Management, GGA
completed a comprehensive analysis of
the existing conditions and evaluated
the Club against best practices in order
to identify potential opportunities for
the Club to further enhance the member
experience and to ensure continued
success well into the future. GGA
leveraged the comprehensive Member
Survey results that were statistically
representative of the membership at
large, in order to gain insight into the
thoughts and needs of the majority
of members and to give support for
key strategic recommendations and
business plan assumptions.
The Strategic Planning Committee
worked with GGA to identify strategic
pillars for the Club, develop the
Club’s goals for 2017 and options for
the Board to consider in subsequent
years. At the October 2016 meeting
of the Board of Directors, the Strategic
Plan was endorsed. Measurable
strategic objectives will be developed
on an annual basis in support of the
strategic pillars highlighted below. A
corresponding five-year Business Plan
for the Club will adequately assign
responsibility and appropriately define
the tactical steps that the Club must
take in order to implement the defined
strategy.
05 STRATEGIC PLAN SUMMARY
In order to sustain its position as an elite private club in the local market, the Board must
be able to anticipate the effects of market externalities and trends on the direction
of the Club. A thorough understanding of key market indicators allows the Club to
identify threats and opportunities before the competition, helping to reposition and
redefine itself for future success. The Market Analysis undertaken by GGA revealed a
positive outlook for future membership and insightful trends that will guide the short
and long-term strategy of the Club. The following highlights the key findings of the
Market Report:
• The member draw area has remained consistent over the past decades and the
Club should continue to focus on attracting and retaining members from the
immediate surrounding neighbourhoods.
The urban sprawl taking place northwest of the Club should be seen as the primary
opportunity to target new members.
The average age of the membership continues to get older which will increase the
natural attrition rate over time. The average age of shareholders is currently 60.
The Club must continue to focus on new member engagement.
The entrance fee at LHCC is positioned as the highest priced entrance fee among
clubs in the region, which is appropriate given the rich amenity profile and quality
of member experience.
The annual all-in cost (including capital fees and dining minimums) for a primary
member and spouse (restricted privileges) at the Club is $7,870, which positions
the Club as the second highest among competitive clubs in the South West region.
The price structuring of unrestricted Intermediate membership offerings at the
Club are priced slightly above average and several clubs offer more attractive
payment plans. In an effort to replenish the member pipeline with young members
and replace the natural attrition of older members, the Club may wish to increase
the attractiveness of these memberships and/or add an additional Intermediate
category for age 35-39.
The current Social and Senior categories are the most popular transfer categories
at the Club, providing an incentive for older members who want to remain members
but desire categories that better fit their amenity usage at this stage in their life.
These categories impact both the revenue and utilization of amenities within the
Club.
The Social membership transfer category at the Club provides high value-for-money
relative to similar offerings at competitive clubs.
These key market observations were utilized to qualify and support membership,
marketing and communications strategies included in the Club’s strategic goals and
objectives.
OVERVIEW OF THE MARKET
06 STRATEGIC PLAN SUMMARY
A review of all operating departments
was undertaken by GGA. They
concluded that the Club is well managed
and most expenses are within or below
benchmarks. Key operational findings
for further review were identified:
The trend of increasing greens/
grounds maintenance costs is at the
high end of benchmarks.
Leasing should be considered when
acquiring future greens equipment
and golf carts.
House department costs now
exceed benchmark with the
expanded clubhouse facility.
The trend in the industry is toward
clubs assuming ownership of the
Pro Shop retail business and overall
operations. Pro Shop expenses
benchmark higher than those of
other comparable clubs.
Advertising and promotional costs
need to increase in support of
membership recruitment efforts.
Total golf rounds at the Club and in
particular guest rounds are below
typical benchmark levels for similar
profiled clubs.
Guest green fee rates are at the
high average rate for our region.
Cart utilization is high and there is
potential to increase cart rates.
The Club’s capital maintenance
spending on equipment and
replacement items is within
benchmark but towards the low end.
OPERATIONAL REVIEW
07 STRATEGIC PLAN SUMMARY
GGA undertook a review of existing marketing and communication tactics. While
the Club has a strong brand presence in the London market area, GGA advised that
consistent and continuous communication of the Club brand is an essential strategy
aligned to future success. Marketing and communication tactics in accordance with
best practices for similar clubs should be used in order to effectively reach target
audience segments and encourage interest in the Club.
It is recommended that the marketing and communication plan emphasize key brand
messages in all communications, advertising, public relations/story placement, and
special events. Multiple tactics should be developed to effectively engage and
tailor perceived interests to prospective members. The marketing and communication
budget should benchmark to similar clubs at between 1% and 2% of gross revenue
each year.
Monitoring of key performance metrics is a key responsibility of the Board. It is recommended
that these metrics be directed at membership leads and conversion rates, tracking of
resignations and measuring the satisfaction, relevance and value of the Club to members.
MARKETING AND COMMUNICATIONS PLAN
08 STRATEGIC PLAN SUMMARY
The summary below highlights key strategic findings and interpretations
from the survey results. The detailed report is available to members
on the Club’s website under Governance/Strategic Plan. The survey
results are considered representative of the membership at large with a
response rate of 70% for voting members and 51% of the total membership.
On an overall basis, the Club is meeting member expectations.
Members are in support of continuing to pursue the current vision and mission.
Communication efforts with members are considered effective.
While there is general member support for how the Club is currently governed,
there was interest expressed in further enhancing the nominating process.
Support exists for allowing either individual in a couple to be eligible to vote.
While facilities and programs were exceptionally rated, opportunities for targeted
improvements were identified that would further increase member satisfaction.
New membership categories including a national/international membership and
‘super senior’ category met with support.
Consider offering dues relief to families with more than two children.
Reduce food and beverage hours of operation to meet typical service demand.
Support for hosting a limited number of prominent community golf events and non-
member weddings.
There is only very limited support for any additional capital maintenance dues.
There is some support for exploring new capital projects.
MEMBERSHIP SURVEY RESULTS
09 STRATEGIC PLAN SUMMARY
A Board of 11 members with 10 Standing Committees, an Executive Committee and
eight (8) Ad Hoc Committees governs the Club. The Board has taken a proactive
approach to Club governance including review and revision of Board policies. GGA
has confirmed that the Club’s By-laws are excellent and grant the Board appropriate
powers and authority to govern the affairs of the Club. The Board and Committees
provide a significant amount of member engagement and interest in the Club.
GGA recommends more be done to reduce the size and complexity of the Club’s
governance structure, which will in turn reduce the significant time and resources
currently used to support the Board and committees.
While the governance of the Club follows established private club norms, GGA has
recommended that the Board consider a number of areas of focus that will bring
governance at the Club to current standards of best practice. These included:
Annual review of the By-laws as a standard responsibility of the Board.
Further developing the Board Policy Manual.
Allow either voting member or spouse to vote on behalf of each individual
membership.
Consider Board members being the Chair of Committees and/or Joint Chairs
through succession.
Consider reducing number of committees and meeting frequency where possible.
Review and edit committee terms of reference annually.
Adopt and use of a consent agenda.
Further develop policies and procedures around the GM/COO’s goals, monitoring
and performance.
Evaluate Board performance at least annually.
Conduct a Board orientation annually.
GOVERNANCE
10 STRATEGIC PLAN SUMMARY
Vision and Mission Statements are the inspiring
words chosen by Boards to clearly and concisely
convey the direction of the club. The Members
Survey results revealed strong support from
a majority of members for the current vision
and mission. Apart from a minor grammatical
revision, the Board has determined there is
no need to make additional changes at this
time and has reaffirmed the Vision and Mission
Statements as stated below.
“Our vision is to be one of the premier private
golf and country clubs in Canada offering an
exceptional total Membership experience.”
The Mission statement defines the Club’s
purpose and primary objectives:
“The London Hunt and Country Club is a family
focused Club providing it’s Members with an
exceptional golf course complemented by
first class dining facilities. To enhance the
enjoyment of Members, the Club includes
such programs as hunt, tennis, trap and skeet,
fitness and social activities.”
The Member Survey revealed the following
as the top attributes of the Club:
Membership for Life
Importance of Club Staff
• Continuous Improvement
Importance of Family
Mutual Respect and Openness
Through these Mission and Vision Statements,
the Club communicates its intentions and
motivates its members and management team
to realize an attractive and inspiring direction
for the future.
VISION AND MISSION
11 STRATEGIC PLAN SUMMARY
LONDON HUNT AND COUNTRY CLUB
VISION AND MISSION
STRATEGIC PILLARS
123456
Sustain a
Healthy
Membership
Ensure
Effective
Fiscal
Management
Improve
Brand
Awareness
Enhance
Facilities
Optimize
Operations
Enhance
Governance
(one)
(two) (three) (four)
(five) (six)
12 STRATEGIC PLAN SUMMARY
The Board of Directors is committed to focus on the following six (6) strategic pillars in
order to support the Club’s Vision and Mission over the next five years – 2017 through
2021. The Club’s near-term and long-term strategic goals and objectives have been
organized around these six (6) Strategic Pillars.
A brief description of each Strategic Pillar is provided below.
1. Sustain a Healthy Membership – Build a robust and vibrant membership to take the
Club into the future. Maximize the member lifecycle by attracting new families at
a young age to counteract the increasing natural attrition caused by an aging
membership, all the while without compromising brand reputation, quality and
amenity offerings.
2. Ensure Effective Fiscal Management – Maintain prudent budget management
and capital planning, protect the Club’s financial security and manage risk of
inadequate funding.
3. Improve Brand Awareness and Communications – Extend the brand reach of the
Club through consistent and continuous communication of key attributes in order
to effectively reach target markets and develop awareness consistent with that of
the finest clubs in Canada.
4. Enhance Facilities – Maintain and consistently improve the Club’s capital assets and
amenity profile in order to maintain and enhance member satisfaction, retention
and rejuvenation, as well as the Club’s fine reputation and competitive market
position.
5. Optimize Operations – Consistent with that of the finest clubs in Canada, ensure
appropriate operational management and enhance capability for monitoring,
analyzing and adjusting to member utilization and expectations.
6. Enhance Governance – Enhance Club governance and reporting model to
achieve business-like systems, processes, and Board collaboration. Constitute a
Governance Committee to consider and implement the governance actions.
The Board of Directors will periodically review and evaluate the goals and directions
with Management and at a minimum on an annual basis, in order to identify the
most appropriate strategic goals and objectives to be addressed in the coming year.
Each year, the Board will strategize with Management to prepare an efficient and
effective Annual Strategic Action Plan that will help direct Club resources to the most
appropriate areas for the coming year. This annual process of determining specific
and measurable strategic objectives is considered of the utmost importance for the
Club to remain current in its thinking and to effectively adapt to changing economic,
market and membership conditions.
STRATEGIC PILLARS
13 STRATEGIC PLAN SUMMARY
objective
(əbˈjektiv), noun
a thing aimed at or sought; a goal
14 STRATEGIC PLAN SUMMARY
The following highlights and documents the Club’s Strategic Goals as established
by the Board for 2017. The strategic goals should serve as a foundation for many of
the strategic action items each year; however, the Board will be alert to changes in
market conditions and update the Strategic Action Plan accordingly.
STRATEGIC OBJECTIVES AND ACTION PLAN
FOR FY2017
15 STRATEGIC PLAN SUMMARY
Strategic Goals and Plan of Action Assigned To Intended Outcome
1. Evaluate Changes to the
Membership Plan
Membership Alignment to
Strategic Plan
Develop a robust and vibrant
membership to take the Club
into the future.
Evaluate the financial
impact of increasing
Intermediate age to 39
to be more attractive for
young families.
Membership Committee
(MC)
Consider adjusting payment
plan term for Intermediate
aged members.
(MC)
Develop a National/
International membership
and include in promotional
materials with the goal of
accepting new members
(MC)
Evaluate the Honorary
(Senior) and Social transition
categories at the Club each
year and decide if a cap is
needed, further restriction
on age and/or tenure, or
increased dues is warranted
Finance and Audit Committee
(F&A)
Strategic Goals and Plan of Action Assigned To Intended Outcome
2. Develop Comprehensive
Forward-Looking Capital and
Financial Plan
Disciplined Plan to Ensure Debt,
Capital Maintenance, and New
Capital Projects are Planned for
and Funded.
Comprehensive plan for funding
debt and addressing new
capital needs to ensure the
Club maintains its standard of
excellence and position in the
marketplace.
Prepare timeline and
critical path plan for the
development and approval
of a comprehensive capital
plan.
(F&A)
• Review GGA
recommendations and
evaluate all capital funding
and financing options
available to the Club.
(F&A)
Monitor performance of the
capital plan.
(F&A)
Strive to maintain a Capital
Reserve Fund with a
minimum balance 2x the
annual Capital Maintenance
expenditures.
(F&A)
Develop a plan for
increasing membership dues
at the pace of inflation or
higher over the next five
years.
(F&A)
TABLE 1: STRATEGIC ACTION PLAN FOR FY2017
1
Capital maintenance expenditures includes capital equipment and replacement items such as greens equipment, golf carts, fitness equipment, food and
beverage equipment, and clubhouse replacement items.
1
16 STRATEGIC PLAN SUMMARY
TABLE 1: STRATEGIC ACTION PLAN FOR FY2017
Strategic Goals and Plan of Action Assigned To Intended Outcome
3. Improve Marketing and
Communication Efforts and
Planning
MC (oversight) Improve Brand Awareness and
Communications
Extend the brand reach of
London Hunt through consistent
communication to effectively
reach target markets for
membership growth and to
develop brand awareness
consistent with that of the finest
clubs in Canada.
Develop a comprehensive
Marketing Plan.
Management
Increase the promotion
budget (operating costs) to
benchmark norms for similar
clubs.
Management
Leverage the GGA
recommendations in
the Marketing and
Communications Plan
to develop an annual
communication plan
that includes a 12-month
calendar, detailed tactics,
and assignment of all
responsibilities.
Management
Create a program that
allows members to
be directive of Club
communications and to
personalize delivery of
content and medium.
Management
• Improve communication
of events to enhance
participation.
Management
Strategic Goals and Plan of Action Assigned To Intended Outcome
4. Prepare a Definitive Proposal
for Facility Improvements
Improve Capital Assets and
Amenity Profile
Prioritize GGA list of facility
improvements in combination
with other capital projects the
Club is considering.
Property Committee (PC) to
monitor and assess current
and future capital assets (to
commence in 2016).
(PC)
• Review GGA
recommendations and
consider other capital
projects and determine
priority order for
consideration
(PC)
Develop a Communications
Plan to market the facility
improvements.
(PC)
• Consider commissioning
a new Golf Course Master
Plan.
(GCSC)
Golf Course Standards Committee
17 STRATEGIC PLAN SUMMARY
Strategic Goals and Plan of Action Assigned To Intended Outcome
5. Implement Changes to
Operations
Operations Alignment to
Strategic Plan
Optimize operating profile
and continue prudent budget
management.
Identify and implement
improvements to Glenmore
and Oxford Room dining
experience, and monitor
improvements in member
satisfaction.
House Committee
Evaluate the benefits of
switching to a leasing
program for equipment.
(F&A)
Increase double cart fee to
$40.
Management
• Review General/Admin
department payrolls for
competitiveness.
Management
Review structure of pro shop
operations.
Management
Consider additional sources
of revenue including
additional golf tournaments
and wedding/banquets
each year moving forward.
Management
Consider strategies to
increase revenue from guest
play.
Golf Committee
Explore opportunities to
reduce chemical and
fertilizer expenses to
benchmark norm.
Management
Fund marketing and
communications budget at
benchmark levels for similar
clubs.
Management
Evaluate utilization of Club
amenities on a periodic
basis to ensure Standard of
Excellence for members,
optimize revenue and
manage labour efficiently.
Management
Periodically monitor and
evaluate the Hunt Section
utilization and financial
support.
Management
TABLE 1: STRATEGIC ACTION PLAN FOR FY2017
18 STRATEGIC PLAN SUMMARY
Strategic Goals and Plan of Action Assigned To Intended Outcome
6. Implement Governance
Changes
Governance Alignment with
Strategic Plan
Improve on already excellent
governance and reporting
model to achieve more
business-like systems, processes,
and Board collaboration.
Constitute a Governance
Committee (commence in
2016).
Board
Consider Board members
being the Chair of some
Committees and/or Joint
Chairs through succession.
Governance Committee
(GC)
Allow either voting member
or spouse to vote on
behalf of each individual
membership.
(GC)
Consider the GGA Club
Governance Model.
(GC)
Develop and approve a
Board Policies Manual.
(GC)
Consider reducing the
number of committees and
the meeting frequency where
possible, i.e. seasonally
or move to bi-monthly.
Encourage Committee
Chairs to cancel unnecessary
meetings. Limit committees
to eight members or less,
not including Management
representatives.
Management
Review and edit Committee
terms of reference annually.
(GC)
Adopt and use Consent
Agenda.
(GC)
Develop policies and
procedures around the GM/
COO’s goals, monitoring
and performance. This is
part of the Board Policies
Manual along with Executive
Parameters.
(GC)
Evaluate Board performance
at least annually, but
preferably at the end of
each meeting.
(GC)
Develop and follow a policy
for In-Camera sessions.
(GC)
Conduct a Board Orientation
annually.
(GC)
Implement electronic notice
of meeting and electronic
voting
(GC)
TABLE 1: STRATEGIC ACTION PLAN FOR FY2017
19 STRATEGIC PLAN SUMMARY
impact
(ˈimˌpakt), verb
to have a direct effect or impact on : impinge on
20 STRATEGIC PLAN SUMMARY
Financial projections have been prepared and are based on the strategic goals
and objectives contained within this document, as well as the evaluation of historic
operating performance and benchmarking work completed as part of the Operational
Review. The projections have been prepared with conservative assumptions for
membership and golf rounds growth, as well as other revenue and expense impacting
factors including inflation.
OVERVIEW OF FINANCIAL IMPACT
21 STRATEGIC PLAN SUMMARY
TABLE 2: FIVE-YEAR CASH FLOW PROJECTIONS
2015
Actual
2016
Forecast
2017
Budget
2018
Projected
2019
Projected
2020
Projected
2021
Projected
Beginning Cash 1,572,284 2,363,848 2,488,493 2,892,238 3,314,638 3,712,260
Total Revenue 6,821,144 7,574,798 7,794,758 7,989,627 8,189,367 8,394,102 8,603,954
Total Cost of Sales (941,389) (1,068,101) (1,067,149) (1,093,828) (1,121,174) (1,149,203) (1,177,933)
Total Payroll (3,401,787) (3,704,885) (3,894,660) (3,992,027) (4,091,827) (4,194,123) (4,298,976)
Total Other Operating
Expenses
(1,789,336) (1,914,699) (2,064,353) (2,061,636) (2,113,177) (2,166,007) (2,220,157)
Net Operating Income
(Before Capital)
715,632 887,113 768,596 842,136 863,189 884,769 906,888
Other Operational Impacts
Impact from extra golf
tournaments with green
fees (2)
tournaments with green
fees (two)
40,000 40,000 40,000 40,000
Impact from extra
weddings/ banquets (4)
32,000 32,000 32,000 32,000
Impact from additional
guest green fees
20,000 30,000 30,000 30,000 30,000
Additional Promotion
Expense
(40,000) (40,000) (40,000) (40,000) (40,000)
Capital:
Long Range Planning Fee 294,668 295,150 295,150 295,150 295,150 295,150
Projected Entrance Fees 750,926 599,634 622,157 636,919 604,333 572,284
Projected Entrance Fees
from Nat/Int Members
10,000 10,000 10,000 10,000
Capital Maintenance (526,000) (803,592) (712,555) (729,715) (743,487) (757,711)
Principal and Interest on
Clubhouse Renovation
(615,143) (615,143) (615,143) (615,143) (615,143) (615,143)
Net Change to Cash 791,564 224,644 503,745 522,401 497,622 473,468
Contingency (100,000) (100,000) (100,000) (100,000) (100,000)
Ending Cash 2,363,848 2,488,493 2,892,238 3,314,638 3,712,260 4,085,728
Capital Reserve Fund 1,052,000 1,607,184 1,425,109 1,459,430 1,486,974 1,515,422
Excess Cash for New
Capital Projects
1,311,848 881,308 1,467,128 1,855,208 2,225,287 2,570,306
22 STRATEGIC PLAN SUMMARY
The cash flow model assumptions are detailed below:
The operating income projections reflect the approved 2017 budget. Operating
income is projected in each subsequent year with consideration of inflationary
impacts
2
.
Increased revenue from additional golf events and banquets/weddings can be
realized in 2018 and each subsequent year based on development of the Action
Plan in 2017.
An estimate of any financial impact from the Pro Shop operational review will not
be quantifiable until the operational review contemplated by the 2017 Strategic
Action Plan is completed.
Additional promotional expenditures commence in 2017 following development of
the new marketing plan.
Entrance fees are based on projections for the next five years
3
.
• Capital Maintenance
4
expenditure is projected based on an 8% of Gross Revenue
benchmark, beginning in 2018. For 2017, the projection reflects the approved 2017
capital budget.
Payment of all scheduled principal and interest payments on the existing $8M
mortgage.
A contingency of $100,000 each year totalling $500,000 as an additional layer of
conservatism in the projections.
Key considerations for the Club regarding the cash flow model and capital funding of
potential new Capital Projects:
The Club has already built up a strong cash reserve and has all the means necessary
to fund existing debt and Capital Maintenance expenditures.
The Capital Reserve Fund is based on a target of 2x annual Capital Maintenance
expenditures. Any cash balance exceeding the capital reserve target would be
used to fund New Capital Projects.
TABLE 2: FIVE-YEAR CASH FLOW PROJECTIONS
2
The decrease in other operating expenses in 2018 is the net effect of no consultant fees expected in 2018 and an inflationary increase of other
expenses.
3
Entrance Fee projection assumes 12 new Shareholder Members each year and payment of all entrance fee payment plan instalments from existing
members.
4
Refer footnote 1 for description.
23 STRATEGIC PLAN SUMMARY
TABLE 3: POTENTIAL FUNDING FOR PROPOSED
NEW CAPITAL PROJECTS
2017
Budget
2018
Projected
2019
Projected
2020
Projected
2021
Projected
Excess Cash for New Capital Projects 881,308 1,467,128 1,855,208 2,225,287 2,570,306
Potential New Capital Projects
Landscape (Phase l - 2017; Phase II - 2019) 200,000 250,000
Tennis Chalet Lighting and Repairs 122,925 122,925 122,925
Irrigation System and Pond 350,000 350,000 350,000 350,000 350,000
Bunkers 250,000 250,000 250,000 250,000
Greens Strip and Re-grass 80,000 80,000 80,000 80,000
Annual New Capital Project Cost 672,925 802,925 1,052,925 680,000 680,000
Cumulative New Capital Project Cost 672,925 1,475,850 2,528,775 3,208,775 3,888,775
Supplement from Capital Reserve Fund (8,722) (673,567) (983,488) (1,318,469)
The projects included in above table are potential projects that require further
review and prioritisation.
The Club will need to utilize the Capital Reserve fund during 2018 through 2021 if
all the proposed New Capital Project initiatives are to be completed within the
indicated timelines.
The financial projections indicate the Club would be able to fund these proposed
New Capital Projects from the Capital Reserve Fund without the need for additional
debt.
• The actual timing of any New Capital Project expenditures will be considered as
part of the comprehensive capital and financial plan that may extend beyond the
five-year period projected above if additional time is needed to accumulate the
requisite funds.
Table 3 demonstrates the process by which the funds would be accumulated for
subsequent expenditure on proposed New Capital Projects.
24 STRATEGIC PLAN SUMMARY
IN CONCLUSION
The Strategic Pillars detailed in this plan, support the Club’s Vision and Mission and
provide direction for the Board in determining near-term and long-term strategic
goals and objectives. The Board is committed to continually improving the family-
focused member experience and will give priority to this objective through the annual
strategic action plan.
Overall, the strategic planning efforts have revealed a sound financial position
and stable membership that is satisfied with the standard of excellence currently
provided at the London Hunt and Country Club. The review process acknowledges
that continuous improvements to the member experience can be achieved and will
need to be a key focus in the annual action plan. In order to maintain and improve
its brand, it is essential that the Club reinvest in its facilities and enhance the amenity
profile whenever strategically beneficial, in order to truly separate the Club from any
competition and “be one of the premier private golf and country clubs in Canada
offering an exceptional total Membership experience”.