President's Message - July 29 2020
As discussed in the last President’s Message, I wanted to keep all of you informed on what is going on at the Club. As we approach our end of July Board meeting, this is where we start looking at our first drafts of the 2021 Budget. As mentioned, we are poised to see a dramatic drop in our revenue for 2020.
Although Covid-19 was around prior to the start of the golf season and was the cause of us being slightly delayed in opening the Club, our budget and projections are made in August of the prior year. Annual dues were determined well before we realized that our revenue streams would be severely impacted.
Some key factors contributing to the loss are as follows:
Green Fee Revenue: Projected $138,550 for 2020
Actual YTD $5,640
Club Storage: Projected $29,250 for 2020
Actual YTD $0
Food & Beverage: Projected $51,600 for 2020
Actual YTD $11,375
Annual Dues Revenue: Projected $1,099,745 for 2020
Actual YTD $1,080,857
There are other items that have been and will continue to be impacted, which all in all have us now projecting an approximately $150,000 operating loss versus a budgeted operating surplus of $60,000.
On the surface, the Club is busy, which may give some members a false sense that our revenue this year must be great. However, we are busy with our members, which is great to see, but without the addition of guest and public paying green fees, plus the other items above and it makes for a tough year. As well, because we are so busy, if we opened the tee sheets to public and more guest play as in years past, to generate income, it would be even harder to get tee times (which no one wants) and potentially impacts health and safety of our members.
We are averaging well over 200 rounds per day and with a few days in excess of 260 tee offs in one day. And this is all with less tee times available because of the 10 minute intervals. We have explored the option of 9 minute tee times, but with many of the other golf courses still at 12, 15 or even 20 minute tee times, to move below the 10 minute mark will not be following the Covid-19 protocols. As we have entered Stage 3 of the re-opening process in the Province of Ontario, it is easy to forget that this is far from over.
We are in the midst of a global pandemic and we are extremely fortunate to be able to escape that new reality and enjoy some rounds of golf at Blue or to sit on the patio for a cold one after coming off 18. As golf is one of the few escapes for us personally during this unique time, our Club cannot escape the financial impacts that Covid-19 has had on many businesses in our community and around our country.
We have worked hard at trimming expenses where we can, not only for this year, but for next as we have to be prepared that we may be operating this way for the foreseeable future. The Finance Committee is working on a strategy to make sure the financials get back on track to ensure that BMGCC is your place to be for many years to come. This pandemic has caused unplanned financial stress for many businesses, but I have every confidence in our Finance Committee to come up with a solution.
There will be another President’s Message in the coming days that will lead up to the Membership Survey.
All the best,