Rates Review 2013

The following was distributed by email to all members on 28/10/2013:
Dear Members,
The Directors formally submit this proposal and justification for a rate increase at the forthcoming AGM as scheduled for review in the agenda.
We have reviewed our expenses pattern for the past few years. I have spent some time arranging our historical financial account information into a group of mostly fixed expenses and a group of mostly variable expenses. See the file attachment. [Links to the file attachments are at the end of this post]
The Mostly Fixed group is Insurance and Rates (water, sewer and property) with   some other items. These basic costs of running the company and its asset management are approaching $10,000. All members need to pay their share of these business and asset management costs even if they don’t use the asset. The Directors have determined that a target near 80% of the fixed expenses is justifiable and we haven’t had a rate increase since 2010. This will be an increase of 12 Soy Latte per year.
The Mostly Variable group results from people using the lodge. A small group of members made up the bulk of the winter income, especially in 2012 ski season. It’s a bit like so much being owed by so many to so few, and we thank those few.
The Directors find it difficult to justify any increase in accommodation rates which would yield the club nothing if there’s no snow and be a disincentive to the small group of members and guests making advance bookings, or any bookings!
The purpose of the lodge is for members, their families and guests to have reasonably priced and comfortable accommodation.
The Directors propose a Maintenance Levy increase to $275 for Families and $160 for Singles. This is $7260 if all pay that don’t have exemptions. This is below the 80% target which would have been $300 for Families and $175 for Singles ($7920)
The Directors propose there should be no increase in booking fees for 2013-14.
The Directors (only 2 for now) propose that all the Summer Unaccompanied Guest Rates be removed. This is just an unnecessary accounting complication, a disincentive to use the lodge and an embarrassment when I say it costs $40 to go with me or $60 to go alone. Very few if any guests have used this.
The Directors propose as an incentive that all paid up members be allowed 2 summer nights accommodation at no additional charge for members and families only. Can’t accumulate, must be used in the year etc. Further details need to be discussed for this proposal. This is an invitation to see the lodge if you haven’t been for a while.
Please send your comments or alternative proposal to the Secretary prior to the AGM.
Kind Regards
Point Summary.
We haven’t increased rates since 2010.
The club basic operating expenses (Mostly Fixed List) are approaching $10000  
Each member is responsible for some part of these expenses. i.e. the deemed 80%
The other (Mostly Variable List) of expenses is generated by people using the lodge.
Bookings pay for these expenses and hopefully generate some excess funds.
We were lucky in 2012 to have higher than average usage which paid for the painting.
If we don’t have some excess funds we cant do improvements or maintenance.
The Lodge is 30 plus years old. It needs funds for maintenance and item replacement.
It’s a great place to stay.
If you had a permanent caravan site somewhere it would cost you $6000 per year.
The Directors don’t like the unaccompanied guest booking rates
The 2 free days is an invitation to see the lodge if you haven’t been for a while.
We’ve been operating for 30 years so we must be doing something right.
Maybe we should base all rate increases on the current price of a medium soy latte.