Page 3 - CCCC Renovation Project Booklet Pt2

Finance Process

The Finance Committee has worked on a plan to determine our borrowing
capacity with lenders through that process our Finance Committee as put

together a timeline outlined on page 31 with assessments included.

Mr. Jim Sedwick, a Past President and current Finance Committee member, will
present this at the meeting on September 8th. In short, we are able to borrow the
funds for the Golf Course phase and the work would finish in 2022. The plan

would be to start any renovations/construction on the Clubhouse phase in 2023
and to finish in 2024. Based on the assessment amount we have built in member

resignations within the first year (based on Club Benchmarking) and increases in
membership throughout the following years as the project becomes completed.

The $6 million for the Clubhouse would only be available to us if our projections
are accurate; if we have more resignations than what we budgeted, we would

have less to spend on the Project. The positive is that we are not committed to a
contract to build or renovate until we know what our actual available capital is.
We hope to have a meeting by December where we can present the results of our

studies to the membership and you will be able to tell us what you would like to
see for the Project. Based on these numbers and cost, our debt service would be

at the same dollar amount it is today on a monthly basis (+/- $1000). We see that
as a major win for the Club.

Due to the terms and interest rate of the loan, our debt service stays the same.

The timing of the loan for the Club makes the most sense because of the Golf
Course phase of the Project and the amount we can borrow to complete that
phase. We are building the Assessment at this time in order to have the proper

funds available in 2022 to start with the nuts-and-bolts part of the Clubhouse
phase that members won’t necessarily see. This would cover items such as: AC

units, Main Chiller, Support Beams, Air Handlers, Roof Repairs and Return Air Fan
Replacement as a start before the Clubhouse phase in 2023.

Our goal is to work on building our Capital Reserve first. The membership will have
the opportunity to give us feedback once we have definite plans for the amenities

and available funding.

CCCC