Why I'm Voting "No" on the Debt Assessment
I am voting "No" on the debt assessment. It's a difficult and complicated choice. I know several others who are doing the same. I was very disappointed in the tone of Tom's recent letter to the membership which read like a ransom note. Other members have noted the same. Despite that, my decision to vote "No" is based on what I heard (and did not hear) in the Open Session.
It's obvious the club needs money to pay its crushing debt. I know that the club management has allowed its banking relationships to deteriorate along with the club infrastructure. The Board of Directors and management team has painted themselves into this corner. I was hoping for something closer to a mea culpa in the Open Session. I know Jeff Smith has to field calls from angry vendors but, frankly, this is why he is paid a six-figure salary. He's great at spinning phrases such as as "liquidity challenges", "scramble money", and "headwinds", but he's terrible at generating realistic forecasts- even once.
Looking forward, the nominating committee has put forth two candidates, one of which does not live here and has no board experience, and another who has held a leadership position for years while our finances unravelled. My confidence is not high and I'm worried about being back in this same position as early as February.
There are other options. The club's credit is already damaged. Instead of asking the membership for yet another financial lifeline, it's time for the BOD to get creative and make hard decisions that may be unpopular in the short term. Reduced ferry runs, lifetime memberships, increases on freight, executive salary reductions or partial deferrals, and opening up desirable tee times at our world famous golf course should be on the table. There are no rental properties available to drive ancillary revenue? Then make the rental program terms actually worthwhile for homeowners. It is the Board's responsibility to get creative to solve the problems which they, alone, have created over the past 3-4 years. I'm hopeful that write-in candidate Clay Burton can do what needs to be done. Clay, you've got my vote.
I know that many people feel like they have no choice but to vote yes, but where does it end without significant changes? As Kaye Earles said in the open session, there are other options that are simply being ignored or overlooked.
It should be clear to anyone who looked at the numbers that the "other options" decribed above are not even a band-aid for the wound we are trying to close. Increases on freight? Sure, thats probably several thousand dollars...over the course of a year. Lifetime memberships? You just created a future revenue hole. Salary reductions and deferrals? More open tee times? Here again, the author is counting nickels. And oh...can you imagine the wailing you would hear if we drop ferry runs to 2-3 per day??
Options for raising revenue should alway be explored. But the problem we face requires an immediate solution. That is true no matter who is on the Board.
Matt Berry