Dear members,
At the recent AGM, your Committee was charged with the task of calling a subsequent General Meeting in order to present a revised proposal for raising Club fees and a clearer explanation of the arguments for such raises This letter, and the calling notice containing the proposal to be considered, seeks to fulfill that task. Please find also attached a paper on the Budget for 2023 and another paper detailing the effect of the proposed fee changes.
On the Budget paper, the first and second columns show that our total expenditure this year is estimated to be around £13,400. This figure represents our likely running costs for the year. It is a “given”, with very little wriggle room.
The middle column shows that our anticipated income, at existing fee rates, works out at a little over £9,500 for the year. The difference between income and expenditure gives an operational deficit therefore of nearly £3,900 for the year. Your Committee is agreed that this is unacceptably large. We are also agreed that it would be irresponsible simply to meet the deficit by drawing on our reserves.
The left-hand column shows that the proposed fee changes would result in a predicted income of over £11,650 in a full year. The deficit would then fall to around £1,750 for the year. Your Committee feels that this is just about manageable. The deficit could in fact be reduced even further if more members played more often, and/or our house-keeping was even more prudent. Your Committee is actively pursuing ideas to increase member activity, such as a possible Sunday bridge and tea social, and would welcome any other suggestions members might wish to offer.
Even with the proposed increases in fees, our rates will compare well with the rates at other Bridge Clubs, and will continue to give excellent “value for money” to members and visitors. The fees have not been increased for many years, in fact, while the current Inflation context means that an increase is now both a natural step, and also one that has a measure of urgency about it.
Yes, we do have £40,000 in deposit at the bank, plus enough money in our current account to cover ups and downs in our cash flow. As mentioned above, it would be poor practice, and bad strategy, to use these reserves up rapidly and heedlessly to pay for running deficits year upon year. Apart from the estimated £750 interest earned by the deposit account per year (a significant new element in our income), please note that the Club’s future at the Showground is by no means guaranteed, with our temporary two-year lease needing to be renegotiated over the next half year. What we have in the bank is there in case there is a rainy day ahead when it will definitely be needed!
With our regards and good wishes,
Michael Metcalf, Chair
Steve Lister, Treasurer
June 2023
| Basis of Current Budget Income for 2023 and different options in price/fees changes. |
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Av income per week |
Av income per week |
Av income per week |
No. of Weeks per year |
Income per year |
Total increased income from option |
| Current Charging Levels |
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| sessions in full year |
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| Mon |
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16 |
£2.50 |
£40.00 |
48 |
£1,920.00 |
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| Tues |
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14 |
£2.50 |
£35.00 |
48 |
£1,680.00 |
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| Thurs - Competitions |
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24 |
£2.50 |
£60.00 |
6 |
£360.00 |
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| Fri |
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16 |
£2.50 |
£40.00 |
48 |
£1,920.00 |
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| Sat Am. Supper |
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Free |
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| Total Session table money |
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Total |
£5,880.00 |
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| Thurs Lessons |
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12 |
£2.50 |
£30.00 |
40 |
£1,200.00 |
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| Fri Lessons |
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12 |
£1.00 |
£12.00 |
40 |
£480.00 |
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| Total Lesson Income |
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Total |
£1,680.00 |
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| Sessions + Lessons |
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£7,560.00 |
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| Effect of price increases proposed to General Meeting |
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| Mon |
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16 |
£3 |
£48.00 |
48 |
£2,304.00 |
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| Tues |
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14 |
£3 |
£43.00 |
48 |
£2,016.00 |
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| Thurs - Competitions |
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24 |
£3 |
£73.00 |
6 |
£432.00 |
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| Fri |
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16 |
£3 |
£48.00 |
48 |
£2,304.00 |
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| Sat Am. Supper |
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Free |
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| Total session table money |
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Total |
£7,056.00 |
£1,176 |
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| Thurs Lessons |
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12 |
£3 |
£36.00 |
40 |
£1,440.00 |
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| Fri Lessons |
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12 |
£2 |
£24.00 |
40 |
£960.00 |
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Total |
£2,400.00 |
£720 |
| Sessions + Lessons |
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£9,456.00 |
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| Total combined increase |
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£1,896 |
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| Effect of £1 increase proposed to on all sessions |
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| Mon |
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16 |
£3.50 |
£56.00 |
48 |
£2,688.00 |
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| Tues |
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14 |
£3.50 |
£49.00 |
48 |
£2,352.00 |
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| Thurs - Competitions |
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24 |
£3.50 |
£84.00 |
6 |
£504.00 |
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| Fri |
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16 |
£3.50 |
£56.00 |
48 |
£2,688.00 |
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| Sat Am. Supper |
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Free |
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| Total session table money |
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Total |
£8,232.00 |
£2,352 |
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| Thurs Lessons |
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12 |
£3.50 |
£42.00 |
40 |
£1,680.00 |
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| Fri Lessons |
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12 |
£2.00 |
£24.00 |
40 |
£960.00 |
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Total |
£2,640.00 |
£960 |
| Sessions + Lessons |
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£10,872.00 |
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| Total combined increase |
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£3,312 |
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| Effect of raising Subscriptions from 2023 rate of £12.50 with an assumed club membership of 90 |
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Increase |
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| raise sub by £2.50 to £15 |
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90 x £2.50 |
£225 |
Proposed option |
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| raise sub by £5 to £17.50 |
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90 x £5.00 |
£450 |
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| raise sub by £7.50 to £20 |
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90 x £7.50 |
£675 |
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