Country Club help

[Jspangler]

I have a few questions

Later this year my wife and I are relocating to an area that neither of us are from. That being said my wife is urging me to find a country club to join so we can be social and meet new people. what are some things I need to know about country clubs. I was looking a one club in particular and it have your annual dues and an annual assesments. What is an annual assesments? Also if there is anyone in the grand rapids, Michigan area let me know of some good clubs to look at.

[Fourmyle of Ceres]

An assessment can be one of two things, although they work out about the same.

One is an assessment at the end of the year in which the shortfall of revenue vs. expenses that was experienced that year is divvied up between the members. So if there are 400 members and the club has $60,000 less revenue than expenses this year, come next January (or whenever the fiscal year audit is completed) each member gets assessed $150.

The other is a special assessment to make some major off-budget expenditure. Say the club decides to have all the bunkers rebuilt over the winter and new sprinkler heads installed around all of the greens to reduce runoff into the bunkers. That might cost $120,000 and each member gets a special assessment of $300 to pay for it.

[Jspangler]

Dang that seems a little rediculious lol. While I have not seen this particular country club or play at one it seems like a lot to charge them an annual fee then tac on an predetermined assemnet. Why wouldn't it all just be covered under the dues. Thanks for the help though

[Fourmyle of Ceres]

The idea would be that the dues are set to cover the expected expenses. If there have to be assessments a couple years in a row then the dues probably ought to be raised so you don't have to keep doing it. But I've heard of some clubs (not mine) who have over the decades gotten used to a yearly assessment of $100 or $200 as a way to balance the budget and everybody just sort of expects it.

 

But reasonably speaking, it ought to be an unusual thing once in a while in a year of bad weather or for some reason a lot of members left or things like that. My club is constrained by its by-laws from increasing dues more than XX% from one year to the next. In the current economic downturn we've not only had to increase dues the maximum each of the last several years we are having assessments yearly to make up the shortfall. Our long-term expense structure assumes something like 360 or 375 members (I forget the actual current number) to break even. As people have lost their jobs and incoming members have been harder to recruit we now less fewer than that. So the remaining members are kicking in a couple hundred bucks every year until the expenses can be pared back to meet the "new reality" and/or an economic improvement drives more members our way. Or at least that's the plan...

[Jspangler]

Like I stated above I haven't physically gone to any clubs yet, I'm just browsing online. The one club that looks very nice has the price chart like this

I would be considered a junior also so that helps some but

InItiation fee: $2500
Annual dues: $2950
Annual assesments: $1667

Now the dues part seems decent as does the initiation fee I just can't get over the $1667 assesments. I don't know if I am missing something or what.
Thanks again for your help

[pgagreg1]

What are the clubs your looking at

[Jspangler]

That one stated above is called cascade hills, but I don't have any set clubs I am looking at. I am in the early process now, we aren't moving til the end of the year but I just want to be informed when I do go up there

[ruascott]

Seems like the club may be struggling, and considering it's Michigan, not surprising given economic trends there. I've not seen annual assessments that big compared to dues.

[ChipDriver]

[quote name='Jspangler' timestamp='1338153151' post='4986136']
Like I stated above I haven't physically gone to any clubs yet, I'm just browsing online. The one club that looks very nice has the price chart like this

I would be considered a junior also so that helps some but

InItiation fee: $2500
Annual dues: $2950
Annual assesments: $1667

Now the dues part seems decent as does the initiation fee I just can't get over the $1667 assesments. I don't know if I am missing something or what.
Thanks again for your help
[/quote]



Sounds like the club is in financial trouble. Easy to get in (low initiation) but expensive to stay - about $400 a month/$4800 a year...and that's before you play golf or eat. In all honesty add another $200-300 to enjoy the club and play golf...so maybe $8000 a year - about $666 a month?

Here's what I would want to know:
1) how many members? How many new members the last 3 years? How many have they lost?
2) what does the assessment pay for? It is possible that this number goes away shortly - OR it is possible that "assessment" is simply another way to trick the membership into believing the dues are affordable. In the end it's "how much money comes out of your wallet each year?"

Depending on the answer - it could be that the cost of entry is easy, but the cost to stay isn't that affordable compared to other clubs - and people may leave frequently (which will kill the benefit that your wife wants). Compare the yearly nut to other local clubs. It is possible that their initiation is much more - but their annual is much less.

[Fourmyle of Ceres]

You don't know what they mean by "annual assessments". That could be some debt-repayment from a long standing mortgage obligation (to finance a clubhouse or a course renovation). Clubs will often borrow a couple million dollars then split out the debt service as a separate billable item for the next 10 years or 20 years. If that's what they mean then as far as you're concerned the dues would be 2,950+$1,667 per year. Averaged over a 7-month golf season (at best) that's a steep tariff although I suppose they have social events during the other months.

Or it may be that by "assessment" they mean monthly/yearly minimums for dining and use of other supposed amenities. You may pay $1,667 at the start of the year and then the price of various things like meals and drinks are paid out of that.

You won't know until you get a more detailed breakdown of charges and obligations from the club than what they put on the web site.

[oldpalchamp]

My old club had monthly dues plus monthly assessments. Like FOC said, the assessments were for repayment of a mortgage. Clubs can have other assessments, too, like the aforementioned operating assessment to cover revenue shortfalls. Clubs can also have regular capital assessments to cover the cost of replacing aging equipment. Whatever you think you are going to pay at a club, you are probably estimating low. I'm not saying clubs are bad, they can be terrific, but they are definitely a luxury.

[odshot68]

Jspangler, I belong to a club in GR. My wife and I have lived here for 9 years and I will say Cascade Hills is definitely not struggling! There is a waiting list to join! PM me with any specifics and I would be happy to help you. I know the most of the clubs in the area.

[Jspangler]

Thanks again for all the help you have really giving me a lot of good information. Now I just need to go look at them in person.

[postfold]

There are quite a few nice country clubs in the Grand Rapids area -- do you have an area of town picked out where you plan to live? I wouldn't join Cascade Hills if I lived in Jenison, nor would I join Sunnybrook if I lived in East Grand Rapids, for example.

[Jspangler]

We aren't set on area yet, we went up there and drove up there to look around and we liked the Grandville area but we are not set on anything.