FINANCIAL REPORT Operations

Fiscal Year 2023 was one of the more challenging years for The Tuxedo Club’s operations A difficult labor market and unprecedented inflation presented several challenges, however, Club leaders ensured that the member experience remained a top priority throughout the entire year

As noted in the industry publication, Private Club Advisor, pre-pandemic one million baby boomers retired each year on average During the pandemic over 30 million baby boomers retired and a large portion of the vacancies have never been filled. This staggering statistic illustrates how the labor market is stretched thin and highlights the need for owners/employers to remain competitive to ensure The Tuxedo Club is an “employer of choice ”

For several years the Club had benefited from multiple-year utility contracts that helped stave off some of the impacts of inflation. However, as these contracts renewed in 2022 and 2023 the Club saw between 51%-100% increase in rates in energy, fuel and power Additionally, direct product costs (e g food), and operating costs (e g golf course chemicals), also increased throughout the year Management worked to minimize the financial impact without sacrificing the member experience

The Club successfully abated the Club’s real estate taxes and will recognize ongoing savings in years to come from both the Village and the Town. As many industry leaders state “Private Clubs are in the business of dues”. It is only through the continued support from Club members and their sponsoring of friends and family for membership that will ensure the financial stability of The Tuxedo Club for years to come

Capital

The old adage applies here nicely “If you are not growing, you are dying” The Club’s net worth relies heavily on reinvesting in the Club’s physical property and plant Throughout Fiscal Year 2023 the leadership of The Tuxedo Club has embraced this sentiment. With the expansion of the Oak Leaf capital contributions, increased annual capital contributions and growth of the initiation fee, Club leadership has positioned your Club for continued success These changes have enabled the Club to:

Provide exceptional pool dining service with the completion of the outdoor pool kitchen, with its very own pizza oven

Implement various finishing touches on the golf course including walking paths and new trees

Complete necessary ongoing building maintenance at the Boathouse as well as golf course maintenance facilities.

Improve the Main Clubhouse’s first impression through the parking lot renovation which provided much needed additional parking spaces and safety for all visitors.

As we begin a new fiscal year the Finance Committee and Long-Range Planning Committee will be working together to ensure this positive momentum