Annual Report of the Chair, Board of Governors And the General and Special Committees 2025
Membership fiscal revenue projections for Equivalent Resident Members (ERM) were derived from analysis of both FY2025 actual data and historical trend date for the last five years. Considering the growing waitlist for all Membership Categories, the Finance Committee along with Membership and the rest of the Board of Governors decided to keep the Resident Membership Cap at 2,400. We heard loud and clear from the majority of Members that capacity remained an issue and to consider increasing the Cap any further would only exacerbate the high demand our current Membership has for Club functions and activities. We continue to grow the Funded Depreciation line in the budget. This Funded Depreciation line facilitates the long-term sustainment funding reserve required to rebuild the Capital Account for Projected Strategic Large Dollar Facility Life Cycle Management Replacement projects’ both known and unknown. As a Club, we depreciate assets at $5.7M annually, however we only replenish Capital Depreciation to the tune of ~$1.6M through our current Funded Capital Depreciation contributions. This is simply not sustainable. It is my goal and the goal of this Committee to further accelerate Funded Capital Depreciation so as to eventually catch up to that which we depreciate each year. The ability to maintain what we have and provide dollars for aspirational Capital Projects depends on this crucial task. To reduce or even eliminate Funded Capital Depreciation would result in a future Capital catastrophe for ANCC. ANCC Fixed Income Treasury Portfolio Beginning three years ago, Captain Dave Graff and I recognized the need to put a portion of our capital reserves to work in the US Treasuries market. We worked with our bank, Truist, to devise a conservative approach to investing in US treasuries over multiple durations. To date this program has proved to be an enormous success. As of the writing of this note, our new Treasury portfolio has generated over $925K in investment income for the Club. We have not had such an investment program since the banking crisis when rates dropped so low it was better to keep the funds in our bank account in order to reduce the bank fees. When our account grew and the rates went back up, Captain Graff and I worked with our banking relationships to build the new program out. Our capital account is now being used to grow the assets of the Club again. We were able to take a substantial portion of our reserves, required by Truist, as part of our clubhouse mortgage covenants and put those dollars to work in a high-interest rate environment. We believe that this program will persist into the future. The collaboration between Captain Graff, myself, and our Treasuries team at Truist has been thoughtful and a major source of investment income to the Club. Treasury durations are typically as near term as 60-90 days and out as far as 3-4 years. I am extremely proud of my committees work on building this program out for the benefit of all ANCC members. FY 2026 Operating Budget: Member dues, athletic and locker fees, restaurant, banquet, and youth activities revenue, and the cell tower land lease, contribute to the funding of the annual operations budget. The FY2026 budget assumes an average fiscal Equivalent Resident Membership level of 2,808. To support the FY2026 operational budget of $43.5M, Resident dues increase of $39 over FY2025 levels was warranted. This reflected a 5.64% increase over FY2025 dues levels (FY2025 had a $38 and 5.82% increase). The FY26 gross budget was determined to adequately provide
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