New Liskeard Golf Club

Annual General Meeting

Sunday, October 2, 2011

1) MEMBERS PRESENT: Ivan Dewar, Ross Latter, Diane Aquino,

Mike Bonnah, Darrell Christo, Pat Elliott, Brian Flaxey, Joe Marsh,

Jeff Stanley, Bruce Helbig, Merv Sharp, Al Jamieson, Isabel Jelly,

Larry Aquino, Bruce James, Murray Cooper, Roy Nightingale, Bill White,

Mike McArthur, Pat Desmarais, Ruth Sheperdson, Jim Graydon,

Bill Johnston, Al Willard, Terry Overton, Wayne Green, Mike Loach.

2) CALL TO ORDER:

The meeting was called to order by Treasurer, Ross Latter at 2:00 pm in the Club House.

a) Quorum of 27 members

3) MINUTES:

a) Approval of the Minutes of the Annual Meeting of November 28, 2010

Moved by: Bruce James Seconded by: Larry Aquino CARRIED

b) Business arising from the Minutes

None

4) AGENDA ADDITIONS:

none

5) FINANCIAL REPORT : Submitted by Ross Latter

In 2007 although our membership revenue was down slightly from the prior

year our total revenue was up approximately $13,000 to $670,000. Our expenses

were up approximately $34,000 to $639,000 from $605,000 the year before

(note amortization is ignored) and the club made $31,000 ($52,000 in 2006).

We ended 2007 with $88,000 in long term loans and another $43,000 in

temporary bank borrowing.

In 2008 revenues dropped by over $100,000 while expenses went down by only $9,000.

We had a lost of approximately $61,000. To finance this loss the club borrowed

$180,000 on a long term basis using the money to:

Pay off old long term debt $ 88,000

Cover the loss 61,000

Reduce temporary bank loans 26,000

Purchase new equipment 5,000

$ 180,000

This new bank loan required payments of $20,000 per year starting in 2010

(1 year, 2009 – no principal payment)

In 2009 revenues continue to drop but only by $9,000. Expenses did drop again

but by only $5,000 so we have a loss in 2009 of $64,000. We finance this by borrowing from

some members $40,000, additional temporary bank borrowing $12,000 and by not paying municipal taxes.

We had no principal payment due on the debt but at the end of 2009

we are in serious financial difficulty and continuation as an 18-hole facility is not assured.

2010 is our turn around year. Due to a number of different factors we make $38,000.

Expenses are down considerably and although membership revenue continues to decline we

seem to have righted the ship. The $38,000 essentially pays our $20,000 bank loan principal

payment due and helps reduce our member loans by $25,000 our temporary bank loans go up $7,000. We also

“borrow” from our members via 5-year membership sales to pay off our back taxes.

So here we are in 2011. As of September 15^th we have about $10,000 in the

bank and have not started to borrow on our $40,000 line of credit yet. It looks like we

will make some money again (not assured yet); at least enough to pay off the $20,000

principal portion of the bank loan that is due in 2011. We are still dependent on member

loans but all our payment, including municipal taxes, are basically up to date.

We will still have $140,000 in long term bank loan at the end of 2011.

2010 and 2011 have been years with excellent weather and no equipment replacements.

With new equipment needed soon and our reliance on good weather we are still in tough shape

and need to pay attention to our finances to ensure our continued survival.

Our current lease payments on equipment are approximately $9,000 per month (May to October)

with no relief until the end of 2012 when they will drop to approximately $4,000 per month

disappearing completely after 2013. We have not replaced any equipment in the past 2 years

and our equipment is continually in use so replacement is necessary.

Our other pressing financial issue is the repair to the clubhouse related to fire code issues.

We have not cost estimate (let’s hope it is less than $10,000 but don’t hold your breath).

Attached is a 2010 Income Statement and Statement of Financial Position.

That the end of 2010 we had a deficit of $208,936 (an improvement of approximately

$38,000 from the end of 2009)

It costs roughly $225,000 to maintain our course. That is roughly $75,000 more than our

membership revenue (from 2010 figures).

Yes the cost of your membership will go up for 2012. We continue to be in tough

financial shape but if we can continue to

improve each year we can look forward to many ears of golf on our excellent course.

Ross Latter

Treasurer

Unaudited - See Notice to Reader
NEW LISKEARD GOLF CLUB INC.
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2010
ASSETS
		2010	2009
Current
	Accounts receivable	$ 8,322	$ 7,932
	Inventory	9,840	17,704
	Prepaid	18,842	9,481
		37,004	35,117
LIABILITIES
Current
		Bank Indebtedness	$ 36,485
		Accounts payable and gift certificates	6,998
		Five year memberships - deferred income	27,457
		Temporary loans (members)	15,000
		Term loans payable	160,000
			245,940
Net Financial Position (deficit)		$ (208,936)
$ 29,703
32,138
-
40,000
180,000
281,841
$ (246,724)

Unaudited - See Notice to Reader
NEW LISKEARD GOLF CLUB INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2010
			2010	2009
Revenue
	Membership		$ 144,903	$ 151,591
	Green fees		107,645	108,803
	Tournaments		90,875	38,837
	Bar and kitchen sales		27,726	117,232
	Pop and sundries-pro shop		7,808	5,237
	Power cart		66,239	43,836
	Club House rentals		6,503	1,300
	Merchandise sales-pro shop		43,175	47,498
	Range revenues		19,415	18,782
	Other		51,430	25,352
	Club Storage		3,807	2,971
			569,526	561,439
Expenses
	Pro Shop Wages		$ 65,692	$ 63,994
	Pro Shop merchandise		39,614	36,773
	Pro Shop other		12,623	24,026
	Pro Shop cart leases		19,941	-
	Course maintenance wages		103,309	120,844
	Course maintenance equipment leases		29,546	59,338
	Course maintenance other		89,000	103,402
	Club House wages and purchases		31,083	74,338
	Club House repairs and maintenance		9,461	3,753
	Club House equipment leases		9,691	-
	Club House other		-	143
	Catering (meals)		28,292	37,110
	Tournament expenses		13,411	18,447
	Administrative -
		Bank charges and interest	11,903	10,538
		Interest on long term debt	7,542	8,754
		Utilities	12,568	12,240
		Telephone and internet	3,470	3,348
		Office	2,460	2,856
		Membership and dues	1,047	910
		Insurance	15,268	13,594
		Property tax	12,897	11,665
		Advertising	3,542	4,141
		Garbage Disposal	1,373	901
		Legal and accounting	5,508	7,670
		Capital improvements	-	5,839
		Other	2,497	534
			531,738	625,158
Net Income (Loss)			$ 37,788	$ (63,719)
Note: The assembly of the 2009 comparative numbers is not consistent.

There was a question concerning the viability of increasing rates. As fees increase membership actually declining?

Would it not be better to cut operating expenses instead of raising fees?

Ross responded that he didn’t feel the decline in membership was entirely a

result of fee increases but that a number of factors are involved.

The new Board intends to have another look at the rates. Also a number of our costs cannot be trimmed.

6) PRESIDENT’S REPORT:

Our president for the past few years Chuck Needham has unfortunately

resigned from the board for personal reasons. I would like to thank Chuck for his years of work for our club and we wish him the best.

So the president’s message for 2011 is actually being written by the

Treasurer and Vice President.

For 2011 our course was in excellent condition, the weather was good and

hopefully everyone enjoyed their golfing experiences at the club this year.

Our General Manager, Bruce Helbig has resigned his position effective October 15^th

and we are currently working at filling this position for next year

(and Bruce returning for 2012 remains a possibility).

Looking forward finances is obviously a big issue and one that can be

overcome so we can all continue our excellent New Liskeard Golf Club.

Ivan Dewar Ross Latter

Vice President Treasurer

7) COMMITTEE REPORTS:

1. Greens

It was a very good year for golfing in 2008. The weather was the major

factor for the excellent conditions of the greens. Over seeding was done this year to

try and get the bare spots growing, but the weather in May was too cold and wet to

get #13 green to recuperate.

Sodding was an option, but it was thought that when the weather got better the seed would take.

As you know this did not happen.

The greens staff worked tirelessly to keep the course in tip top shape.

Fertilizing, top dressing, and over seeding continued all summer on a regular basis.

Many thanks to Pedersen Construction for their efforts to improve our

course on #13 and the enlargement of the bunker on #17.

Our thanks and appreciation go out to Corey Phillips who with the help of

Yvan and his staff brought the golf course back to life over the last 3 years.

As you know Corey will be leaving us at the end of September and we all wish him good luck in his new endeavor.

Let’s hope 2012 brings us the same weather as the last 2 years.

Greens Chairman

Brian Flaxey

2. Pro Shop

Weather wise we had another great season for golfing.

This definitely helped with our green fee revenues, which we all know is needed to sustain

our club as membership fees don’t cover all our expenses.

During the summer Bruce arranged 4 Club Demo days, which indulged Adams,

Cobra and 2 with Calloway. The Demo days were well attended by members and non members.

We average around $4,000 in gross sales per demo day thru the pro shop.

To date the Pro Shop has grossed around $70,000 in merchandise and equipment sales,

exclusive of tournament prizes. As we all know, the net from these sales goes to the

club operations and we “Thank” all who utilized your Pro Shop for purchases this year.

Last but not least we would like to thank Bruce and his staff for the good job they did.

The Board did receive a number of favorable comments from members and non members.

Also, we want to wish all the summer help well in the coming year with their education at

whatever school they are attending. Maybe we will see some of them back next year.

In addition we want to thank McKenzie and Kyle for coming on board to finish the golf season out.

3. Club House

Our clubhouse caterer who looks after all clubhouse functions continues to be

Zantes Bar and Grill and they have already confirmed for next year.

I do want to thank them for the excellent job they do!

Unfortunately we have been advised by the Fire Marshall’s office of substandard alterations

which must be done to meet the current fire code. We have a building permit and hope to

proceed with the work before we start next year’s season. We have no cost estimate

but $10,000 may be low (let’s hope not). While we are not happy about this, we have to

spend this money and meet the fire code in order to continue with the clubhouse.

Ross Latter

Chairman – Clubhouse Committee

There was a request for more details on the renovations to the Clubhouse and if the ladies

lockers are going to be removed.. Ross explained some of the requirements involved fire

doors installed at the top and the bottom of the stairs. The furnace needs to be enclosed in a

fire proof room and the compressor and hot water heater will need to be moved to the new furnace room.

The wood paneling and ceiling tiles need to be replaced. Because we have a tenant, the

hole in the wall under the addition must be sealed off. There is also some work around the gas

tanks outside by the Maintenance Shed that needs to be completed. We have done as much

remedial work as possible to date. The Fire Marshal has been very lenient. We now have a building permit.

As questioned the ladies lockers are not to be moved.

4. Tournaments

The 2-Man in May was sold out. Kal Tire, the sponsor seems good for another year.

This is reviewed yearly.

The Jim Sergeant Civic was not as successful. There was no sponsor.

The committee is considering a 2-man division next year to get the numbers up.

There has been good feedback from this idea. We really need to look at a multiple

sponsor deal for this tournament. I went to Timmins for their big two man and they had

sponsors coming out their ying yang. If this is what’s needed we will more to this direction.

Grant Home Hardware 3 –Man, This tournament was down a bit in numbers this year.

I believe it was due to how long it took to play it last year. This year with the time it took to

play we will cap it at 60 teams every year. As the pace of play was much better food was

excellent so that should return people next year.

The sponsor for this tournament will have to get looked at over the winter, as

I believe they are making our better than we are if we were to sponsor it and take all the

prizes out of the pro shop as we are left with stock every year. It will get looked at.

Pat Elliott

Tournament Committee

There was a question about prizes for the Grant’s tournament. Both Pat and Darrell

noted the current situation was a problem. It was too late to change for this year.

However, next year the Tournament committee would be looking for a corporate

sponsor with prizes from the pro shop.

5. Advertising

No report

6. Planning

Our Mission Statement is “To provide a first class golfing experience at an

affordable price and to grow the game of golf in our community.”

Our number one priority remains financial independence and we must remain

vigilant to achieve our goal. For the next five years our financial objectives include; paying

our billed when they become due, eliminating our reliance on borrowing (from members or the bank),

reducing our long term debt, and if there is any leftover provide funding for

capital improvements and equipment replacement.

In 2012 it is very likely that the membership fees will have to increase to

keep up with the rising costs of materials and services. You must remember that the

increased cost of last year’s membership was all taxes and the club never received a penny of it.

We are continuously looking at ways to attract new younger members and

fully intend to continue with the discounted rates for new members, returning members and those aged 21 – 29.

The number two priority is to continue our Greens Revitalization

Program to ensure the long term health and survivability of our greens.

We are entering our fourth year of this program and are very happy with the results.

This year we were able to start work on the fairways and tee boxes and it is

anticipated that this work will continue next year.

In the Clubhouse we will need to address the deficiencies that were

identified by the Fire Inspection. We anticipate that the bulk of that work will be

carried out over the winter months and hopefully will be completed by the start of next season

The total cost of this work is estimated to be $10,000. We will continue to lease out the

bar and kitchen in order to provide our membership with the services at a known cost.

Improvements being considered for the web site include a GPS

application for iphones and google, a Face Book page and booking tee times on line.

One of the changes this year was the printable calendar.

Our web site (www.nlgc.ca) is updated regularly so make sure you check it out.

Mike Bonnah

Planning Committee

7. Membership

NEW LISKEARD GOLF CLUB MEMBERSHIP 2011
		2011	2010					=/- Prev. yr.		2009
	Adult			85		93			(8)			110
ge 19-29				5		4	1						1
1st Time				32		24	8						19
Returning				18		24	(6)						0
Total				140		145	(5)						130
Couple		(27)		54	(21)	42	12				(27)		54
Corporate		(2)		4	(4)	8	(4)				(9)		18
Under 18				21		33	(12)						45
							0
Total Membership				219		228	(9)						247
Life Members				9
Driving Range				31		43
Club Storage				36		37
Power Carts - 7 day				19
Power Carts - 5 day				14
Power Carts - Grandfathered				11

It was pointed out that we might add some additional strategies to encourage green feers to become members. Pat Elliot pointed out that the reduced membership rates for the 20-29 year olds could attract as many as 20 new members. Ross also pointed out that you have to be careful with packages. You don’t want to make them so attractive that the people currently paying membership fees will decide it’s cheaper to just buy some sort of package.

It was suggested that we should be actively going after some of the people from Quebec who come and play. Bruce pointed out that next year he expects at least 20 new members from Quebec

Motion to accept committee reports as presented:

Moved by: Al Willard Seconded by Mike McArthur CARRIED

8) ELECTION OF DIRECTORS

Five directors (Ivan Dewar, Ross Latter, Diane Aquino, Pat Elliott, Jeff Stanley)

agreed to let their names stand. Mike Loach volunteered to accept a nomination.

As there were no other nominations the above names were all acclaimed.

9) NEW BUSINESS

None

10) QUESTIONS/COMMENTS/DISCUSSION

It was asked if the installment plan for fees would be available next year?

Ross pointed out that it is possible to give post dated cheques.

We do not want to get into too much administrative time.

It was pointed out that rates for lots of other courses are remaining the same or going down.

How high do you think our rates can go before most of the members can’t afford them.

However, some members noted that our rates are comparable to other 18-hole courses around the north.

He We are getting a good deal. Our course is a good as any. It was pointed out that as of the end of

September we are not boring money. September did produce some revenue.

The year was not quite as good as the previous year but things are definitely better that 2 years ago.

Finances will continue to be a challenge.

It was suggested that possibly money could be raised by renting out the

clubhouse for a number of non golfing events. Ross pointed out that Zantes

held the lease and did in fact rent it out but that the monies go to Zantes under the lease terms.

It was noted that if you want people to return, you need an attractive facility.

The Ladies and the Men’s Locker rooms which are being used more this past year for the

washroom facilities are in deplorable condition. In fact for much of the year the

Ladies Locker room was being used to store empty beer cases. Who is responsible for cleaning—the

Greens Keepers or the Pro Shop. Ross replied that this is an area that seems to have

fallen through the cracks but will definitely look at and make some decisions for next year.

What has happened to the trophies and the pictures of past presidents.

The pictures are in the cupboard under the TV and the trophies in the case around the corner.

Mike McArthur pointed out that it is important to recognize the history of the club.

Maybe we need to have more member involvement. Ross concurred.

He said that he would have to check with Zantes be felt some accommodation could be made.

There was some concern as to the status of negotiations with Bruce Helbig.

Ross stated that a committee of the Board is working of this issue and hope to have it resolved by the end of October.

It was pointed out that we need to get into the schools more to attract young golfers.

Mike pointed out that the clinics have been full. We have a very active junior program.

We will make sure we get the message out to the schools earlier in the season.

11) ADJOURNAMENT:

Motion to adjourn at 3:15 pm.

Moved by Mike McArthur Seconded by Roy Nightingale CARRIED