Recent Boards have focused on reducing long term debt carried by the Club and operating on a cash available basis. The last loan entered into by the Club was for the purpose of replacing the failing breakwater at the Marina in May, 2010.
The Club’s commitment to long term debt reduction has reduced our debt burden by over $1,000,000 in the 41 months from June 2010 through November 2013.
The 2014 annual budget continues the practice of operating on a cash available basis and is complemented by a substantial reduction in the cost of our long term debt via interest rate reductions achieved by our CFO Jack Keathley and GM Paul Wellenberger, through negotiations with our lender.
Interest expense and principal reductions on the four remaining loans for the 2014 year will generate annual savings of $61,102. This annual savings applied to the varying terms of the loans results in a total savings in excess of $500,000 over the remaining life of our loans.
Two of the remaining loans will be paid in full in June, 2015. This will further reduce the operational cash required for the Club’s debt service by over $65,000 annually.
Your Club staff, along with your Board, continue to seek ways to reduce the operational burdens shared by property owners. CFO Jack Keathley’s efforts, supported by GM Paul Wellenberger, have yielded a substantial benefit to all owners. Please be sure to thank them for their efforts.
Community Club Board of Directors