2023 President's Report

GRANITE GOLF CLUB

2023 PRESIDENT’S REPORT 2024 ANNUAL DUES & FEES

The objectives for the 2023 golf season were to continue to build upon the strengths from the previous year consistent with our strategic pillars of the members’ Golf Experience, the Property, and the Club Community. This guided our decision making in the boardroom as well as daily operations. Now that the dust has settled on 2023 and our member survey is complete, we can confidently conclude we made significant progress on our objectives and that this has been one of the best years in Granite Golf Club’s history. Our key highlights are: Earliest opening of the Club since 2015.

Completion of the new entrance gate and landscaping project to protect and enhance our club.

Lower than anticipated member attrition rate.

Net addition of 45 Senior Member Equivalents.

STEPHEN CARLIN

Access to the tee remains good - especially when compared to our GTA peer group.

President

Food & Beverage service and menu enhancements with positive member feedback on broader menu choices, as well as friendly, attentive staff and service levels thanks to Clubhouse Manager Jasmine and Chef Greig.

Record attendance at all member events.

An overall high level of member engagement across all outlets of the Club.

Spectacular golf course conditions thanks to the leadership and efforts from our Club Superintendent Yanik Mayer and his team.

Golf Shop operations that delivered an exceptional member experience all season long thanks to Steve Halse and his committed team of professionals.

Surpassed all our financial targets with entrance fees, annual dues and secondary revenues all being stronger than budget.

As we look towards 2024 and beyond, the Board and management are focusing on the following priorities that integrate with our strategic pillars.

THE PROPERTY

THE GOLF EXPERIENCE

Our club is rapidly approaching its 25th

Maintaining exceptional access to the tee has always been a top priority for our membership and in survey after survey is second only to maintaining a premier golf course. Though our rounds of golf have increased since 2019 from approximately 19,000 to 23,000 in both 2022 and 2023, relative to other competitive GTA clubs who have greater than 30,000 per season, our access remains very good. What has changed is the distribution of rounds of golf throughout the week as well as compaction periods on weekends and holidays. All rounds of golf are now considered prime time rounds, with much less variability day-to-day in a week.

anniversary, and to maintain the golf course and infrastructure at the level expected by our membership, it is imperative that we protect and enhance our number one asset.

We are moving forward with additional planning and communication for required capital projects included in the initiative we call Project Next 25: Greens resurfacing to remove invasive poa annua and replace with new modern pure bentgrass species.

Bunker renovations to replace aging sand and liner and update a dated design.

Modest

course

design

changes

to

enhance the playing experience of the golf

course

are

being

considered,

including rebuilding of #7 and #8 greens.

This initiative will be brought forward for member

approval

at

the

2023

Annual

Member Meeting scheduled for March 23, 2024.

Statistics notwithstanding, management and the Board are very aware of the higher activity levels over the last few seasons at the Club and are working to: Maximize available tee times through reducing course closures for internal and external events.

Control member categories that deliver lower revenue per round of golf while ensuring the Club's economic model remains successful.

Improve measures to reduce lost or wasted teetimes.

Manage guest play access.

THE ECONOMIC MODEL We have completed a detailed budgeting exercise for 2024 and determined the revenue required to operate the Club at a breakeven or better level. Rather than increase all member dues the same percentage, we reviewed our dues by membership category relative to the market and on a value received basis. The result of this review means we will be raising Senior Member dues by 5% for 2024, with higher percentage increases specifically for weekday and intermediate membership categories to better reflect the value per round of golf played. Additionally, we will continue to manage discounted member categories as appropriate.

A number of years ago the Board and Management established a detailed Long Range Capital Plan budgeting process which determined that over the longer term the club was not accumulating enough cash to fund medium and long-term capital requirements. Rather than resort to a member assessment or a significant level of debt to fund these projects, the Club took a proactive approach towards capital fees to ensure it has the necessary financial resources to complete needed capital expenditures while remaining financially strong. Capital fees will rise again this year, in line with inflationary trends, and slightly higher in other categories as we complete the transition to align the fees consistent with member use.

FINANCIAL RESULTS We will complete the fiscal year ahead of our financial budget as a result of strong contributions from all areas of the club Golf Shop, Food and Beverage as well as Operations. The results can be largely summarized as an engaged membership using all aspects of their club as well as strong responsible expense management. From a membership perspective, we experienced fewer than expected resignations and strong new member intake. Our cash balances increased by approximately $450,000 to $4.0 million during 2023. The cash reserves are essential for the long-term financial success of the Club. It will fund projects identified in our LRCP and provide a buffer against any unforeseen economic headwinds. To summarize, the Club had a great year financially, and we are cautiously optimistic as we enter fiscal 2024.

CONCLUSIONS The 2023 golf season has been a great success because of the commitment of the Club’s management team, employees, committee volunteers, the Board of Directors, and most importantly you the members. We are heading into 2024 in a very strong financial position. Thank you for your feedback and support throughout the year. It has been a privilege to be your Club President this year. We look forward to your participation at the Annual Member Meeting in March 2024 where you will have an opportunity to support capital reinvestment plans that will lay the groundwork for the Club's next 25 years.

2024 FEES ANNUAL DUES CAPITAL FEE

PRIZE FUND

GAO DUES

Senior age 40+

8,175

890

95

42

Senior Spouse age 40+

6,135

890

95

42

Senior age 35-39

6,540

890

95

42

Senior Spouse age 35-39

5,315

890

95

42

Intermediate/Spouse age 30-34

5,725

890

95

42

Intermediate/Spouse age 26-29

5,315

890

95

42

Intermediate/Spouse age 23-25

4,170

890

95

42

Intermediate/Spouse age 19-22

3,355

890

95

42

ANNUAL DUES CAPITAL FEE

PRIZE FUND

GAO DUES

Junior age 15-18

1,305

-

40

42

Junior age 10-14

735

-

40

42

Juvenile age 4-9

-

-

-

-

Non Resident Senior/Spouse

2,535

-

-

42

Non Resident Intermediate

2,385

-

-

42

Weekday Member/Spouse

4,905

890

55

42

Weekday Associate/Spouse

4,905

890

55

42

Restricted Play