Capital Improvement Plan – CIP

Capital Improvement Plan

In 2017-2018, the Board of Directors sought a way to ensure the financial needs were understood across the entirety of the club. With that research the board came up with a Capital improvement Plan which is a way to plan for big purchases as opposed to continually reacting to problems that crop up (deck breaking, pumps dying, courts crumbling, etc). With the CIP we understand what funds are needed each year for upkeep of the club and smart improvements based on direct feedback from our members.

How did we develop the CIP?

How did we develop the CIP?

The CIP was developed by gathering historical knowledge of several things: how long equipment lasts, past purchases and tax records and finally by surveying our members to understand where the membership priorities were. By knowing what the membership is looking for in addition to all the known maintenance items for our systems we put together an initial list of “ALL THE STUFF”. Once the “what” is understood we had to determine, as closely as we could, when would each item need to happen and how much would each item cost. We have used historical numbers, gathered estimates and prioritized projects based on a number of different criteria, including age of items, results of our member survey and length of life. Once these items were done we next had to look at the financing. What we’ve come up with, in our opinion, is the most financially responsible way to fund the CIP. By paying for all of the work through a share increase and a small dues increase, we will incur no loans and be solvent for a long time coming. By financing our CIP in this way the foundation for future growth will be set.

What’s in the CIP?

What is in the CIP?

Everything from furniture to pool pumps to tennis courts and lighting system are in the CIP. Just about every major system is in our CIP. The plan includes renovations to the downstairs bathrooms and the upstairs clubhouse. The plan includes white-coating the pools, replacing pump filters, and a myriad of other items. Before the CIP development we did not have a plan for any of the ongoing maintenance of our club. In the past, the board react to broken equipment or systems as they happened as opposed to replacing aging equipment on the regular schedule. Now we’re looking ahead and can see over the horizon.

 

How do our costs compare to that of other clubs?

As part of our planning process, we researched other clubs in the area to see where our costs stacked up. If you take a look at the chart below, you can see while our club size is around average our costs are much lower.

Graphic shows costs of Mantua vs several other clubs in the area.

Notes:

  1. McLean, Vienna Woods & Arlington Forest do not have clubhouse facilities.
  2. Arlington Forest completed a $1M+ renovation recently, including new buildings for their bathrooms, snackbar and lifeguard office.  Their bond increases $310 each year for 3 more years.
  3. Mantua has not increased dues since 2015.

What are the financing options available?

  • Increase the bond/share of members ownwership (refundable upon sale of membership)
  • Increase annual dues
  • Non-refundable member assessments
  • Loans & Mortgages
  • Some combination of some of the above options

What does the board propose we do?

Our plan to fund the the continuing growth of the club via the CIP is by doing the following:

  • 2019
    1. Increase Owner Member Bond by $300 – from $1,100 to $1,400 (Refundable upon sale of Membership)
    2. Increase Renter Dues amount from $555 to $700 (Well below cited average of other clubs)
  • 2020
    1. Increase Owner Member Dues by from $495 to $525

Effects:

  • Complete several major improvements in 2018-2020
    • Renovate downstairs dressing/bathrooms.
    • Renovate upstairs clubhouse
    • Pool Concrete Deck Improvements
  • Several planned improvements/upgrades
    • Additional decking and replacement of decks around the tennis courts
    • Additional deck in the area between the upper & lower pool (In grassy area adjacent to wading pool)
    • Clubhouse elevator (ADA Access)
  • Bond increase is completely refunded upon the sale of your membership
  • Increases shared among owners and renters
  • No Mortgages
  • No Loans
  • No Non-Refundable Assessments