Opening Remarks

John Trimble

President

AGENDA−Vote on Land Sale – Ballot Box Open−Opening Words – John Trimble−Minutes of the 2014 Annual Meeting−FY15 Finance Report – Howard Cooper−President’s Report – John Trimble−Directors’ Reports: Will be in handout format with

Directors available for questions−Question & Answer period− Finance Report on Budget for FY16 – Howard Cooper− Introduce 2016 Board of Directors− Voting Box Closed – Results will published next week.−Adjournment

2015 Board of Directors

John Trimble Chris Couch Sandra Milner-DockingSteve Campbell Terry Calder

President Vice-President Secretary Captain Greens

Howard Cooper Craig Colquhoun Norma Columbus Declan Dunn Tim Charlton

Finance Marketing House/Social Membership At Large

Motion

1) To approve the 2015 Draft Audit Statements

2) To approve

Ritchie Shortt & Tully LLPChartered Accountants

As the 2016 Auditors.

R2R Final Report

Howard Cooper

R2R Finances UpdateHoward Cooper– Finance 

Estimate Sources Summary$000s TotallLand Sales

SWMP Land 0Gross Proceeds 1,847Less: Expenses -43Less: Taxes -381

Bypass Road Land 0Gross Proceeds 1,853Less: VTB (payable July 2016) -801Less: Expenses -43Less: Taxes -213

CPA Assessments (2012, 2013, 2014) 938R2R Assessments (2013, 2014, 2015) 611Term Loan Mortgage 3,000Operating Line 1,500Transfer from capital fund (i.e. initiation fees) 325

Total Project Cash Sources 8,593

R2R Finances UpdateHoward Cooper– Finance 

BudgetCategory Amount Cost To Date Variance

Clubhouse Construction 4,610,350 4,573,295 37,055 Landscaping/Parking/Roadway 841,590 1,029,332 187,742- Practice Facility 558,351 558,351 0- Utility Connections & Services 65,308 66,357 1,049- Demolition 238,625 246,088 7,463- Sewage System 237,000 274,331 37,331- Cart Building 192,781 228,286 35,505- FF&E 544,000 526,498 17,502 Soft Costs 1,033,890 1,042,023 8,133- Financing Costs 145,000 41,958 103,042 A/V Costs 125,000 125,639 639- Contingency 0 - - Total 8,591,895 8,712,158 120,263-

R2R Finances UpdateHoward Cooper– Finance 

• At the 2014 AGM the scenario pointed towards a project cost of $8.7M with an additional assessment of $418 per member.

• The final assessment of $150 per member has been applied towards R2R with the remaining shortfall account for in added debt.

$ 000s, except per member amounts Low Mid HighTotal Project Cost 8,600 8,650 8,700 Funds and Financing Available 8,478 8,478 8,478 Potential Unfunded Costs 122$ 172$ 222$ Assessment Per Member ($ per member) * 230$ 324$ 418$

Scenarios

FY15 Finance Report

Howard Cooper

FY15 Finance ReportHoward Cooper‐ Finance

• Financial statement overview– Audit report is in the standard format and unqualified.– Statement of Operations.

• Surplus before undernoted items in F/S of $27k.– Revenue shortfalls in all main categories. Significant increase in 2ndhalf of the season. 

– Cost containment more than offset revenue shortfalls.– Membership transfer activity lower than budget. 

• Financing – $3M Long Term Debt– $1.5M added to operating line

FY15 Finance ReportHoward Cooper - Finance

000's BUDGET ACTUAL DOLLARREVENUE 2015 2015 VARIANCE

MEMBERSHIP FEES 1,872$ 1,905$ 33$ GOLF FEES* 446$ 359$ (87)$ GOLF MERCHANDISE 206$ 165$ (41)$ FOOD & BEVERAGE** 992$ 937$ (55)$ MISCELLANEOUS/DISCOUNTS 40$ 48$ 8$

TOTAL REVENUE 3,556$ 3,414$ (142)$

FY15 Finance ReportHoward Cooper - Finance

000's BUDGET ACTUAL DOLLAREXPENSES 2015 2015 VARIANCE

FOOD & BEVERAGE 1,010$ 882$ 128$ CLUB HOUSE 225$ 279$ (54)$ PRO-SHOP 381$ 397$ (16)$ GOLF MERCHANDISE 154$ 131$ 23$ GREENS 1,050$ 1,052$ (2)$ GENERAL ADMINISTRATION 734$ 666$ 68$

SUB TOTAL EXPENSES 3,554$ 3,407$ 147$

SURPLUS / DEFICIT 2$ 7$ 5$

FY15 Capital ReportHoward Cooper - Finance

BUDGET ACTUAL

CAPITAL REVENUE 2015 2015

INITIATION FEES 100,000$ 60,000$

PAST INITIATION UPGRADES & GAIN ON SALE OF ASSET -$ 900$

MEMBERSHIP CAPITAL IMPROVEMENT ASSESSMENT FEES $250 X 531 132,750$ 132,750$

TOTAL CAPITAL REVENUE $232,750 $193,650

FY15 Capital ReportHoward Cooper - Finance

BUDGET ACTUALCAPITAL EXPENSES 2015 2015

CLUB HOUSE - CAPITAL IMPROVEMENTS & EQUIPMENT

New Server 23,000$ 13,543$ 4 POS Touchscreen Terminals -$ 6,870$ Comupter for Pro-Shop -$ 2,080$ 4 Wireless Access Point w/Routers -$ 5,388$ Horizon Phone System -$ 8,444$ Landis Shoe Polisher -$ 1,720$ Additional Patio Furniture 15,000$ 7,071$ Locker Name Plates -$ 2,573$ Draught Fittings for Bar -$ 4,145$ Racking for Cart Barn -$ 2,347$ Racking for Clubhouse Storage -$ 2,360$ 2 Electric Dryers -$ 870$ Furniture F&B and Pro-Shop -$ 2,630$ 20 Kaddy-Lac Triton Pull Carts 6,000$ 5,700$ Lightning Detection System 31,000$ 28,751$ Practice Range Furniture 13,000$ 11,650$ Steam Kettle -$ 5,057$

TOTAL CLUB HOUSE CAPITAL IMPROVEMENT & EQUIPMENT 88,000$ 111,198$

FY15 Capital ReportHoward Cooper - Finance

GREENS - CAPITAL IMPROVEMENTS & EQUIPMENT

Credit from 2014 Accrual for Maintenance Electrical Upgrade -$ (2,974)$ Reshaping of 1st Tee -$ 27,108$ Turf Care Capital Lease - Various Machines 19,000$ 18,906$ Maxium Capital Lease - John Deere Equipment 6,500$ 6,574$ Kooy Brothers Capital Lease - Kubota Equipment 14,500$ 14,824$ Maintenance Area and 15th Fairway Design 5,000$ -$ Grating for Bridge @ #12 -$ 2,518$ Entrance Road Repair -$ 72,879$

TOTAL GREENS CAPITAL IMPROVEMENTS & EQUIPMENT 45,000$ 139,835$

TOTAL CAPITAL IMPROVEMENTS & EQUIPMENT 133,000$ 251,033$

TOTAL CAPITAL SURPLUS/(DEFICIT) 99,750$ (57,383)$

President’s Report

John Trimble

2015 HighlightsJohn Trimble ‐ President

―New Clubhouse―Course Conditions―3rd Land Sale―New Events―Thank You

― Strategic Planning―Maintenance Facility – Plan Application―Presentation to Membership on Maintenance Facility and 15th Hole. 

2016 – What to ExpectJohn Trimble ‐ President

Questions

FY16 Operating Budget Assumptions

Revenue Member Rounds 23,522 16,100 25,360 26,900 Guest Rounds 2,184 1,030 2,526 2,625 Tournament Rounds 758 0 360 650 Total Rounds 26,464 17,130 28,246 30,175 Average Weighted Guest Fee (pre HST) 86$ 68$ 78$ 80$ Average Weighted Tourn. Fee (pre HST) n/a n/a 69$ 80$ Power Cart Rate (pre HST) 15.04$ 15.00$ 17.70$ 17.70$ % of Riders 28% 22% 22% 23%Food Sales per Round Played 10.66$ 2.16$ 16.71$ 18.71$ Beverage Sales per Round Played 8.54$ 5.37$ 12.09$ 12.57$ Pro Shop Sales per Round Played n/a 3.84$ 5.87$ 6.15$

Actual 2013

Actual 2014

Actual 2015

Budget 2016Assumption

Expense AssumptionsPro Shop Cost of Sales n/a 87.0% 79% 75%Food Cost of Sales 43.60% 54.1% 38% 39%Beverage Cost of Sales 42.90% 38.0% 39% 38%Kitchen Wages 47.90% 100.0% 46% 40%Serving Wages 39.00% 55.8% 31% 30%

FY16 Operating Budget ‐ Revenue

$000s REVENUE ACTUAL ACTUAL ACTUAL BUDGETREVENUE 2013 2014 2015 2016

MEMBERSHIP FEES $1,684 $1,797 $1,906 $1,921ASSOCIATE PREMIUM FEES 4 0 2 2GUEST GREEN FEES 187 70 200 209TOURNAMENT GREEN FEES 20 3 23 52POWER CARTS FEES 113 57 123 126POWER CADDY FEES 0 0 11 15PRO SHOP SALES 0 68 165 222INTEREST 14 18 10 10MISCELLANEOUS/DISCOUNTS 27 32 38 30FOOD & BAR. GRATUITY, HOUSE MIN. 579 144 937 1,145

TOTAL REVENUE $2,628 $2,189 $3,415 $3,732

FY16 Operating Budget ‐ Expenses

ACTUAL ACTUAL ACTUAL BUDGET2013 2014 2015 2016

FOOD & BAR, GRATUITY $617 $184 $882 $1,060CLUB HOUSE 243 67 279 281PRO-SHOP 337 320 528 561GREENS 964 985 1,052 1,116GENERAL ADMINISTRATION 613 574 665 711

TOTAL EXPENSES $2,774 $2,130 $3,406 $3,729

GROSS SURPLUS /(DEFICIT) ($146) $59 $9 $3

EXPENSES

FY16 Operating BudgetHoward Cooper ‐ Finance

– Break even budget.– “A” member base dues increase set at 0.50% or $18.– “B” & “C” member increase $19 to maintain the approved 

$300 spread between categories. – Debt servicing fee of$600 for the season. Payable with the 

annual dues. (If interest rates increase suddenly this may increase concurrently). 

– No increase in junior or juveniles fees.– No increase in guest or cart fees.– No increase in house minimums.– Increase in tournament rounds– Increase in non‐golf related events

FY16 Capital BudgetHoward Cooper ‐ Finance

Revenue– Capital Improvement Assessment remains at $250 / member. 

Payable $125 in May and June.

Expenditures– Payments on capital leases entered into in FY14 and FY15– 5 new green tarps, all our greens have new tarp covers. – New ball picker for the range– Repair of cart path at #1 tee‐ Gardens for around the clubhouse (Including front round about)

FY16 Capital BudgetCLUB HOUSE - CAPITAL IMPROVEMENTS & EQUIPMENT 2016

Combi Oven Rack X 2 5,500$

TOTAL CLUB HOUSE CAPITAL IMPROVEMENT & EQUIPMENT 5,500$

GREENS - CAPITAL IMPROVEMENTS & EQUIPMENT

Turf Care Capital Lease - Flex 21's, Workman, 648, Yamaha utilities (Yr. 3 of 5) 19,000$ Maxium Capital Lease - Dakota, Bannerman top dresser (Yr. 3 of 5) 6,500$ Kooy Brothers Capital Lease - Kubota Equipment, (5060 & 6060) (Yr. 3 of 5) 14,500$

Duke Equipment Lease - Smithco 1750, Ventrac, 5 Utility Carts (Yr. 1 of 5) 31,300$

Kubota Lease - RTV w plow/Spreader, 4760 Tractor (Yr. 1 of 5) 16,000$ Toro Lease - Twin Turbine Blower, 3 Wheel drive triplex, 4300-D (Yr. 1 of 5) 17,000$ 5 Perforated greens tarps 11,500$ Ball Picker 4,500$ Pave 186 Feet of cart path at #1 Tee 2,000$ Fence at reservoir to Hide dumpsters/propane tanks 2,000$ Front Garden 5,000$

TOTAL GREENS CAPITAL IMPROVEMENTS & EQUIPMENT 129,300$

TOTAL CAPITAL IMPROVEMENTS & EQUIPMENT 134,800$

CAPITAL ASSESSMENT PER MEMBER 254$