PRESIDENT ’ S REPORT BY RAY KARBON
What an unusual year ! Our General Manager – s first 12 months on the job have certainly been exciting . Our entire staff has done an admirable job during this pandemic , and our members have shown the patience that is in the best spirit of enduring fellowship .
The first year of implementing our Strategic Plan has been very successful . The Board has adopted the Plan – s model that encourages continuous improvement in all the Board – s processes . Each Board meeting devotes significant time to our strategic focus . Mark Smith keeps this Plan on track - making sure important goals are completed , new goals identified , and the Plan updated accordingly .
The extended shutdown and related restrictions on our movements are reminders how fragile our freedom is and how easily it can be curtailed . It is no exaggeration to say we – re living through turbulent and troubling times – economically , socially , and politically .
In sharp contrast , our Club continues to provide a sense of peacefulness and stability our members can count on to help them preserve a sense of balance and provide their families and guests a safe and restful haven . But we can – t assume things will continue without significant effort from all of us . In particular , the Club – s ongoing financial sustainability is going to need our attention .
CCR has been on an economic rollercoaster over the years – riding high in the mid-1970s with $ 5.6 million from oil exploration and by 1990 we couldn – t pay our monthly bills ! Fortunately , we – ve rallied to overcome that dark period . Our financial accounting and transparency are now at industry-leading standards , while each member – s experience has been materially improved . But , as our gas revenues dry up , we must draw on lessons from our own history if CCR is avoid another – 1990 – and still serve future generations .
Lesson # 1 : We must work together , not separately or independently , for the good of the whole Club .
While each of us experiences the Club in our own way , it is only by working cooperatively together that we can achieve the most benefit for each of us . Each year we elect new Directors , and changing one or more persons can change the dynamics and the effectiveness with which the Board discharges its responsibilities . So , we – re adopting procedures and policies intended to continually improve Board performance .
Lesson # 2 : We must rely on ourselves for the future sustainability of the Club .
Since the mid-1970s , keeping members – out-of-pocket costs low while also making significant improvements to our facilities and amenities were priorities for both the Membership and Boards . Our dues are the lowest of any club of our kind in the country , but only because we have heavily subsidized dues and fees with oil and gas royalties . It takes $ 2 million to operate and maintain CCR each year . Annual member dues bring in just under $ 1.2 million . User fees , transaction revenues , and fund transfers make up the difference . But balancing that equation is increasingly difficult as assets age and repair and replacement costs rise .
PRESIDENT ’ S REPORT CONTINUED
Lesson # 3 : We cannot expect large returns by making small investments .
Replacement costs of our capital assets
total many millions of dollars . We spend about $ 350,000 a year to repair or replace them , but Capital Dues raise only $ 140,000 . This underfunding has been going on for many years . Reserves in the Capital Fund can currently cover only two years of normal expenses . If one of our more expensive assets fails unexpectedly , the Fund would be hard pressed indeed . That is why the Board instituted higher user fees and tripled the percentage of operating revenue dedicated to the Capital Fund . We also commissioned an ad hoc committee to closely examine the Capital Fund and recommend actions to ensure it can meet its future obligations .
Lesson # 4 : Funding the Ranch without external sources of revenue should not present an overwhelming burden .
Our current financial challenges are not as immediate as when we faced insolvency in 1990 . So , we must scrutinize expenses so members know their money is spent responsibly . And , it will be up to the membership to provide additional revenues . It will be tempting to deplete Endowment and Resource Fund deposits instead of bearing higher member costs . Giving in to that temptation will lead to another 1990-type insolvency . Such actions would soon prove inadequate and raising new revenues from ourselves would still be necessary . If we act responsibly , deliberately , and in a timely fashion the financial impact on each membership can be reasonable , containable , and affordable . Strengthening the Capital Fund will be a high priority , high impact effort to ensure CCR – s sustainability this year .
How You Can Help Ensure CCR – s Sustainability .
We , the members , will determine the kind of Club we – ll leave to the next generation .
Become informed .
Read the Strategic Plan , Board minutes , and CCR News . There is so much information available to you .
Be open-minded and focus on what – s best for the organization . Because we use this Club in different ways , we can differ on how we should operate . These differences can be divisive so collecting the real facts is always the best first step .
Ask good questions of the Board and Management and avoid unfounded rumors and gossip .
This is the most certain way to get the real facts connected with any issue or concern .
Become actively involved .
This is YOUR Club , OUR Club . Simply paying our dues won – t be enough to ensure CCR will offer future generations that same wonderful experience all of us have grown to expect . Just raise your hand .
Together , we – ve weathered this unusual year and emerged stronger . We – re looking forward to the next 12 months with optimism and hope . It is my sincere wish that each of us enjoy a healthy , happy , and worthwhile year ahead .
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