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With our current revenues and expenses , CCR ’ s Board of Directors and Management are continually postponing much needed repairs and replacements of assets . Repairs and replacements have become more of a reactive response rather than a proactive response to keep these items operational . If we continue the same level of services to our members , without additional revenue , it will eliminate the Capital Fund ’ s cash reserves in less than four years .
The Board of Directors and Management continue to review expenses but cannot overcome the current shortfalls as projected in the Reserve Study of August 2020 that was prepared by Reserve Advisors , an independent , outside company . Over the past few months , we have attempted to be clear , transparent and open with the upcoming expenses that CCR will have . As fellow members , we hope you see the tremendous value you receive from this great club in exchange for the overall annual dues you pay . The Board is recommending the following changes within the Bylaws to assist in funding the Capital Fund for several years to come :
• Increase Entrance Fees by $ 250.00 and $ 300.00 respectively and have the entire Entrance Fees go only to the Capital Fund :
Article III , Section 1 . Entrance Fee : Each new Member shall pay the following entrance fee to be contributed to the Capital Fund :
A . Six Hundred and Fifty Dollars ($ 650.00 ) for each new Member who is a son , daughter , parent , sibling or grandchild of a current Member or who had been a previous member .
B . One Thousand Eight Hundred Dollars ($ 1,800.00 ) for any other new Member .
• Increase the General Assessment $ 35.00 per year for the next four years ( 2022 , 2023 , 2024 , 2025 ) and have this increase allocated to the Capital Fund :
Article III , Section 3 . General Assessment : The Board is authorized to assess an annual general assessment ( the “ Dues ”) upon each holder of a Membership Certificate in an amount not to exceed the amount approved by the Members at the last preceding Annual or Special Meeting of the Members at which the annual general assessment amount was considered and approved . Of the Dues , One Hundred and Five Dollars ($ 105.00 ) in 2022 , One Hundred and Forty Dollars ($ 140.00 ) in 2023 , One Hundred and Seventy-Five Dollars ($ 175.00 ) in 2024 and Two Hundred and Ten Dollars ($ 210.00 ) in 2025 and future years shall be allocated to the Capital Fund ( as defined in Article IV ) and the remainder shall be allocated to the Operating Fund ( as defined in Article IV ).
• The current Bylaws allow 50 % of the annual net income of the Endowment Fund to be deposited into the Operating Fund . The proposed language would allow 50 % of the annual Endowment Fund net earnings to be deposited into EITHER the Capital Fund or the Operating Fund , depending on the Board ’ s assessment of the financial status of these funds at the end of each
year .
Article IV , Section 2A . Capital Fund Source : The Board shall maintain an account to be known as the Canada Creek Ranch Capital Fund ( the “ Capital Fund ”) funded out of receipts from entrance fees , proceeds from sales of lots , proceeds from timber sales ( stumpage ), proceeds from sales of assets , any portion of the Dues allocated to the Capital Fund , a percentage of the user and accommodation fees , special project assessments that may be imposed from time to time upon the approval of the Members and allocations from the Endowment Fund and the Resource Fund as provided herein .
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