Swimming Pool

The final financing will be driven by specific options which are selected, the timing of phasing the implementation, and fine tuning of the financing alternatives.  However, a key question for all our members is how the financial plan affects them.  As such we have assembled the following analysis of funding alternatives.

In our recent membership survey we asked two questions about funding which have helped us drive our financial strategy.  These questions and the responses from the members is below:

Q16 All repairs, improvements, changes, and replacements will involve expenses.  In your opinion what is the best way to pay for them?  Please rate the following options:

	Totally Acceptable	Somewhat Acceptable	Somewhat Unacceptable	Totally Unacceptable
Increase Annual Dues	29.9%	37.2%	18.2%	14.6%
Impose one-time capital assessment	21.3%	30.9%	22.8%	25.0%
Take out loans to be paid back over time as an increase in annual dues	32.6%	37.8%	14.1%	15.6%
Sell land owned by the Mohican Swimming Pool Association outside the pool complex.	41.6%	21.9%	16.8%	19.7%
Have the pool retain a portion of the funds when members transfer existing memberships.	31.2%	31.9%	14.5%	22.5%
Fund-raising from members and the community.	44.9%	35.5%	11.6%	8.0%

Q17 If Mohican Swimming Pool Association started a campaign to raise capital for the pool improvements, would you consider contributing.

	Response Percent	Response Count
Yes I would consider giving a gift.	40.8%	58
No, I would not consider giving a gift.	27.5%	39
Not sure.	31.7%	45

While the responses show some concern for each of our options, there is overwhelming support to put all options on the table.  As such our model of a funding strategy takes all approaches into account.

Note for the purpose of this analysis I have considered two approaches.  Under the first approach a portion of the funding is provided by a loan financing over time.  However, as our current by-laws make financing difficult, a second option is provided which does not include financing.

For the purpose of this discussion I have also used the two middle options for the master plan – replace the pool with an 8 lane pool and replace the bath house with a summer season structure.

With the information below you can also look at the impact of alternative scenarios – either changes to the master plan options or the use of particular funding strategies.

Option 1 – With Financing:

(8 Lane Pool & Replaced – summer season Bath House – Total Cost = $2.3 million.)

Funding Mechanism	Amount Raised
Current Reserve	$270,000
Assessment (one time $750 / Member	$300,000
Sale of 1 lot (of two potential)	$500,000
Fundraising	$230,000
Financing over 20 Years	$1,000,000

Member Transfer Fee = $1000 X 35 Sales / year = $35,000

Annual Dues requires $65,000 / 400 members = $162.50 / Year.

Option 2 – Without Financing:

(8 Lane Pool & Replaced – summer season Bath House – Total Cost = $2.3 million.)

Funding Mechanism	Amount Raised
Current Reserve	$270,000
Assessment Across Project ($3,250 / Member)	$1,300,000
Sale of 1 lot (of two potential)	$500,000
Fundraising	$230,000

No Increase in Annual Dues after Assessments are completed.

NOTE:  There are numerous ways to use each of the tools above to cover our financing.  To consider the options you can change any of the numbers to see the impact on the other numbers.