The webinar of September 9th included a number of questions about the clubs finances and about the refund policy. We are providing the information below to help the membership better understand the club's financial position and proposed refund policy.
The Club's available cash is expected to be significantly depleted this year due to much lower revenue and higher costs. This is the case whether we stay closed or whether we open at less than full capacity. The financial impact to the Club can be partially mitigated if we are able to reopen with sufficient membership levels. We anticipate that losses will be funded from the Club's cash reserves. In saying that, the Board believes the Club has adequate cash to meet its requirements for the coming year whether or not the Club reopens.
It costs between $20,000-$30,000 to start up the ice plant, so it is important to ensure that we have enough committed membership to justify start-up costs. Our fixed costs, including, but not limited to, mortgage, insurance, salaries, utilities, property taxes, bank charges, and audit costs are expected to be at least $250,000 even if the club remains closed and would be higher if the club reopens. Refunding 50% of membership fees in the event that a member elects to terminate their membership early or if the club is forced to close following reopening, is intended to help cover these costs. In that context, taking out a Pandemic Membership not only contributes to the financial health of the Club, but also counts toward our membership revenue target to reopen.
We hope that the above information helps clarify questions for the membership and helps each member make their decision about rejoining the club this year.Helen Stephenson
President, Oakville Curling Club