MARK ZUCKER’S TREASURER REPORT OF AUGUST 22, 2017 TELLS US

ALL IS NOT WELL AT DELAIRE.  WE NEED YOUR MONEY SOON, OR ELSE.

 

The headline tells it all. According to the Zucker report we have had operating deficits all year long starting with the February loss of $47,916. By June the loss widens to $121,750, and in August to $129,476. Who knows what September will bring? On August 22nd we were informed that an assessment will be needed to make up the loss. Our management is not, will not, or does not understand how to manage without deficit financing!  As long as we have mandatory membership that is obligated to make up deficits, our board is not motivated in the elimination of deficits. There are no incentives for their operating a tight ship. Our blasé membership is not holding their feet to the fire that leaves but two solutions to stop such nonsense:

 

1.        Get rid of Mandatory Membership to make the club adhere to proper business practices. Members must be treated and accepted as customers not captives. If a business is not run properly it cannot and should not stay in business.

2.        Get rid of the present Board that hasn’t a clue how to run a business. None of them even ran a Dairy Queen.

 

 The deficits shouldn’t come as a surprise; we have been spelling that out for a long time including the negative impact on our property values! Question:  Will the non-residents be equally assessed? NON-RESIDENTS use all of our facilities and more!  If the board does not assess them in equal amounts as the mandatory members, it is time for our membership to immediately request a special meeting as described in Article III Section 3 “Special Meeting” We are standing by to help and direct you in that must campaign!  All you have to do is “WHISTLE”.

 

Be prepared for a “huge assessment”. Our non-resident membership gets bargain pricing, featuring a 50% reduction and no initiation fees, and is a major factor resulting in our deficit.  We have asked and the board has refused to do a major forensic accounting to assess if any of the revenue of the “NRM” are ending up on the bottom line, or as suspected are adding to the deficit. It has been our argument from the beginning that “NRM” are costing us more than what is being collected. Amongst the missing revenues of membership are the added absent revenues of the following:  Free golf carts, no dining room minimum, no storage fees, free guest and family members.  We are once again echoing that we are not against non-resident membership, but only on the same basis as our mandatory membership.

 

The continual raiding of our Capital Improvement Fund has brought us the present abyss.  Our home sales are not expanding as portrayed in the August 22nd letter.  We have a full complement of non-resident members.  Therefore, from where can we derive revenue to cover the expenses?  Is raising the dues of our mandatory members our only solution?  How long can that go on? We are already paying more than most of the surrounding clubs in the area. The only place for us to raise the revenue needed to sustain our operations is from our nonresident members, or cull them thereby reducing our expenses accordingly.  If we continue to only subject our mandatory members to increases we will surely end up having to sell our golf courses to a “Home Builder” like so many others have done to get out of the quagmire and back to fiscal responsibility.

 

Our money difficulties are enough of a headache not to look for others.  But unfortunately that is not the case with our management who always look toward wielding their power. The Karpel v. Brecker grievance hearing and 1 year suspension has been added to the menu of difficulties facing Delaire survival. Both situations as described on the web are not legal as per Florida law. The club will likely be engaged with law suits after the August 28th Brecker Board Appeal, if not rejected by the Board.  This could result in punitive damages in excess of the D&O coverage the club provides.  Another failure of our board’s poor foresight.  Read my attorney’s August 23rd letter posted on the web for a better understanding of the laws by which Delaire has not abided. This chain of events may cause another huge assessment to cover the damages beyond the insurance coverage.

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