1. Long Term Financial Planning
Status Update & Long Term Planning
January 22nd , 2014
1896-1996: a vision towards 2046

2. Why are we here Tonight?
 We now have an accurate assessment of the current infrastructure
conditions and required remediation
 The harbour project requires that some of the remediation be done
now
 This is not part of the Harbour project
 We must plan for addressing all of the remediation and more
 How do we move forward?

3. Agenda
 Strategic plan review
 Harbour status
 Remediation summary
 Club financial summary
 Bridging the gap
 What’s next?
 How to provide feedback

4. Strategic Plan: Review
A phased plan:
1.
2.
3.
4.
5.
6.
Dock at Jemmett’s Landing (2012)
Fuel Dock (2012)
Expand and enhance our Harbour (Spring 2014)
Harbour Remediation (future)
Saint’s Rest Renovation (future)
Clubhouse Renovation (future)

5. Harbour Redevelopment Status
Complete
 Develop business plan
 Property appraisals (S. Rayner & Associates)
 Financial feasibility analysis (KYC, ongoing)
 Negotiate and sign water-lot lease (Transport Canada)
 Pre-consultation meeting with City of Kingston (KYC)
 Develop Initial harbour design (Shoreplan Engineering)
 Conduct Initial wave study (Shoreplan Engineering)
 Investigate project financing options (KYC)
 Determine electrical Infrastructure requirements (Genivar)
 Underwater inspection of the entire harbour infrastructure (Shoreplan
Engineering)
 Queen’s wave Study (Ryan Mulligan)
 Determine harbour remediation requirements (Shoreplan Engineering)

6. Harbour Redevelopment Status (cont.)
In Progress
 Secure project financing
 Obtain permits from Cataraqui Region Conservation Authority
 Obtain permits from Transport Canada
 Submission of site plan to City
 Finalize tender document (Request for Proposal) for the docks
and attenuator (Shoreplan Engineering)
 Develop parking strategy (KYC)
 Develop membership recruitment and retention strategy
 Collect names/Info on potential new slip holders
 Select and engage Project Manager
 Completed Works Appraisal

7. Harbour Redevelopment Status (cont.)
Remaining
 Partial Harbour Remediation [ Fall 2014 ]
 Electrical [ Fall 2014 ]
 Applications/Deposits open for new slip holders
 Off-site construction begins [ Winter 2014-2015 ]
 Site preparation begins [ Winter 2015 ]
 Installation of new floating breakwall and docks [ Spring
2015 ]

8. Remediation

9. Remediation
 Current Conditions
 South & West side of breakwater
 Insufficient/eroded stone protection on the south side
 East End of Breakwater
 Perforation of the steel plate where the T-dock is mounted
 Collapsing Gabion baskets on the lee side
 Insufficient/eroded stone protection on the South side
 North side of breakwater
 Collapsing gabion baskets on the lee side, east end
 Concrete barrier re-enforcement of gabion baskets needs
attention in the future

10. Remediation
 Current Conditions (cont.)
 Center Pier
 Collapsing cribs
 Loss of stone fill
 Concrete cap no longer properly supported in places
 Clubhouse perimeter
 Very poor shape all around
 Perforation of the sheet pile and collapsing cribbing
 West wall of Shark basin
 Some work needed, but generally in good shape!
 North Wall from Shark basin to gas dock
 Poor condition, unknown lifespan

11. Remediation (cont.)
 What will is Cost?
 Total Cost:
 $1.7M to $2.2M
 Various options for remediation
 Report is available online.

12. Remediation
 Which aspects relate to Harbour Redevelopment?
 Center Pier (Reach D)
 East End of Breakwater
(portions of Reach A & B)

13. Remediation (cont.)
 Phasing of Remediation work
 To be done now: ~$700K
 With the harbour project
 To be done in the near future: $1Mto $1.5M
 Timeline not exact (0- 15 years?)
 With current finances, we cannot afford this.

14. Why are we here Tonight?
 We have an accurate assessment of the current infrastructure
conditions and required remediation
 This work is not a result of the harbour project
 The Harbour project is forcing the timeline of some of the
remediation work
 This initial and future remediations fall outside the scope of a selfsustaining Harbour project.
 How do we move forward?

15. Financial Status
 What do we need for long term financial health?
 Sustainable Operations (short & medium term)





JS
House & Property & Harbour
F&B
Membership growth
etc.
 Infrastructure renewal (long term)




Docks,
Breakwalls,
Club house & buildings,
etc.

16. Financial Status: Operations
 How are we doing?
 What do we put back into club each year:
 ~$50K+
 What we need to put back into the club each year:
 ~$120K
 How do we fund the Gap?

17. Financial Status: Infrastructure
 How are we doing?
 We are making some progress
 Gas dock and Jemmett’s landing (complete)
 Harbour (in progress)
 We don’t have a formal financial plan for:
 Remediation
 Clubhouse
 etc.
 Difference?
 Very big!

18. Financial Status: The Gap
 2015 (projected)
 Profit: $70K
 Capital improvements: $50K
 Debt servicing: $20K
 2015 (what we need)
 Profit we need : $233
 Capital improvements : $70K
 Reserve fund: $85K
 Debt servicing: $88K
 Difference: $153K
 Capital improvements increase : $13K
 Annual contribution to reserve fund: $85K
 Additional debt servicing: $155K
 $100K covered by new harbour revenue

19. Bridging the Gap: Possible Scenario
Possible Scenario:
 Increase membership fees
 25% for 2015
 cost of living after that (~2.5%)
 Capital assessment
 of 16% of membership fees per year
 Grow membership
 Next 5 years:
 Associates by 10% per year
 Other categories by 2% per year

20. Bridging the Gap: Capital Assessment
 Targeted approach to raising funds
 Pay for loans for immediate remediation
 Excess builds funds for next round of remediation (10
years?)
 Once paid off, funds continue to accumulate or be
spent on the next priorities
 Saints Rest?
 Club House?
 etc.
 Need to continue indefinitely

21. Bridging the Gap: Fees
What should fees look like in 2015?
Fees 2015
(2014 + 2.5%)
Fees 2015
(Required)
Capital
Assessment
(2015)
Family
831
1,000
160
Single
613
738
118
Corporate
1701
2,047
328
Associate
335
404
65
Assoc Nominee
125
151
24
Non Resident
202
243
0
Junior
85
102
0
Type

22. Bridging the Gap: Harbour Project Impact (1)
 How will the Harbour project impact finances?
 It will increase our membership base from which
to draw revenue
 Result:
 After 5 years, we should have $50K-$80K
more in reserves than without the Harbour
project.

23. Bridging the Gap: Harbour Project Impact (2)
Membership F & B Spending
Spend Tier
0
< 51
51 - 99
100-250
250-500
500-1000
1000+
Full Members
# of Members
%
60
18
13
26
36
30
32
215
28%
5%
6%
12%
17%
14%
15%
Group %
39%
29%
29%
Spend Tier
0
< 50
50 - 99
100-249
250-499
500-999
1000+
Boaters
# of Members
5
2
3
8
17
19
21
75
%
7%
3%
4%
11%
23%
25%
28%
 Summary: Boat owners spend much more
 86% of boat owners spend over $250/year, compared to
only 58% of members in general spend over $250/year
Group %
13%
33%
53%

24. Bridging the Gap: Other Means
 Initiation Fees?
 Helps with membership retention
 Contributes toward capital projects
 Capital Assessments
 Debentures
 F & B Minimums
 What else?

25. What Happens Next?
Problem: Without an plan to increase our revenue, we will be unable to
tackle current and future infrastructure and capital requirements, and
we will not be able to move ahead with the Harbour project.
We need feedback from the membership.
 Survey to solicit feedback.
 2nd Town Hall Meeting: Present feedback and gather more input
 3rd Town Hall Meeting: Present a plan for moving forward
Goal: Membership approval for financial solution to maintain the long
term viability of the club and to be able to move forward with the
harbour project

26. Getting your input
Ongoing Feedback Options
• Survey to be made available shortly.
• E-mail: harbourquestions@kingstonyachtclub.ca
• Web: www.kingstonyachtclub.ca/newharbour