Update from the Treasurer

General Update from the Club Treasurer

As of June, 2019

The Hanover Seaside Club is working through an unusual 8-month year due to the overwhelming member-vote that changed the dates of the member-year to correspond with the Club’s fiscal-year which runs from November 1 to October 31.  The result is a compressed 2019 member-year that compels the staff and Board to do in eight months what traditionally occurs in a normal twelve month year.  We look upon this challenge as an opportunity to make our Club better and stronger.

Your Club is generally in sound financial condition with the following caveats;

7. We are operating under a deficit budget which was approved at the January 2019 Annual Meeting.
8. The Club has experienced higher than usual mechanical failures this Spring which reflects the aging condition of the facility and a strain on the current budget. Many thanks to Bo Wessell for his help and assistance.
9. The Club had to pay a large penalty in January 2019 for the 2014 tax-year which was not planned for in the current budget. The Club’s 2015 Tax-Year is still under review by the IRS.
10. Club membership limits are being impacted by a significant number of millennial children (up to 26 years of age) who are exercising their Constitutional right to join the Club. We have taken in 13 children of members so far this Spring. (See more in Membership Update below)
11. Our Club is implementing new Club Management software purchased in 2018. The new software is just now becoming operational.  This software will be very helpful as we get it fully operational.
12. The Hanover Seaside Club’s Constitution specifies nine (9) categories of membership based on age, length of membership, and family relationships.
    1. The various membership categories require that the Club collect detailed member information such as birthdays, family relationships, and even car information for each member. Parking stickers, timely adjustment of dues, and children’s eligibility for membership depend upon the accuracy of the information you have provided the Club.
    2. Updating member records is a complex process. We have been in the process of updating member records for months.  Ultimately, the accuracy of your record depends upon your input.  Accurate member information will assist the Club in better serving you and help the Club with long-range planning.  We have asked that members be patient and assist us as we update your records.   Our web-site has been upgraded for security purposes and Club records cannot now be easily accessed through Google search engines.
    3. Parking Stickers for 2019 will be valid through Oct 31, 2020. This board approved extension will save the Club almost two thousand dollars.
13. The most recent tax return for the HSC is now available in the Club office for member review.
14. The 605 (A-frame) was significantly damaged during the recent hurricane. Our membership voted to create an ad-hoc committee to research all viable options for the A-frame property.  That process is nearing completion and there will be a called meeting in late July during which the regular membership will review options and make a decision on how to best use the property.

Membership Update: Our Club’s membership has exceeded the 760 member Constitutional maximum all year.  Unfortunately for those on the waiting list, Hanover Seaside Club has reached a level of equilibrium where children of members are entering the Club at a rate that keeps us above our membership cap.  Beginning in February, the only new members taken in are the children of current members, as provided for in Article V, Section 2-1 of the Constitution.  Note that this year’s Board has conducted all membership votes in open session to improve transparency. The Finance Committee has recommended raising the membership cap but no action has or will be taken without a member vote at the annual meeting.

IMPORTANT REMINDER:  Please note that our membership voted at the 2019 annual meeting to change the Club’s Member-Year to match the Club’s Fiscal-Year.  The next member-year will begin November 1 and this will necessarily change our Club’s annual billing cycle.  Member costs will remain unchanged when adjusted for the upcoming 12 month year versus the current short 8 month year.  This is a member directed one-time event as we transition to a combined member/fiscal year.

The upshot of this change is that, going forward, you can expect your dues statement for 2019-2020 to arrive in late September – early October.  This will have no effect on total dues paid from year to year, but it is a big change in the timing of annual bills.  Please budget for the change and remember that it was a member vote that brought about the change.

In summary, your Club is working through a transition year of implementing updated accounting and membership processes.  We make significant progress each month, but not without some friction and we appreciate your patience.  Going forward, we will become a stronger, more efficient organization.   2019 is also a year where regular members will make an important real estate decision regarding the A-Frame property.  I will include the economic impact of the 605 A-Frame decision in the next Treasurer’s Update.

 

Best regards,

Dan Hickman, Secretary/Treasurer 2019