May 25th, 2015

Hudson Yacht Club Inc.

HYC Fee Structure Issues

Mandate of the Committee

To review the appropriateness of the present Membership Categories
and their associated Fee Structure in light of the changing demographic
of the HYC Membership and make a recommendation(s) to the
Board of Directors if and as judged necessary.

Hudson Yacht Club

Mandate of the Committee

Committee Members

Doug
David
Derek
George

Meredith (Chair)
Law
Patino
Roberton

Colin
Gord
James
Joan
Sharon

Scotcher (Commodore)
Thompson
Campbell
Kirby
Gaul

Hudson Yacht Club

Fee Structure Review Committee

A National Trend

Hudson Yacht Club Inc.

(Percent of Population over 65)

HYC is already at 23% even including children and 40% of Senior Members
Source, HRSDC Canada

Two Key Membership

Challenges (updated to Jan 2015)
700

1. Decreasing Senior Membership Ages 65 or less

600

400

SR.
SR 65 & SR 70

300

200

100

Hudson Yacht Club Inc.

500

2. Increasing Senior 65+ with Discounts

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

An additional 19% will be eligible for seniors discounts within 5 years.

Only 9% of our senior members are under the age of 39..the lines will cross!

Membership Fees in Context

Membership Fees

513,487

43%

Other Revenues

684,989

57%

Total

$ 1,198,476

100%

The Club generates other revenues but Membership fees are

the single main source of income

Hudson Yacht Club Inc.

(2014 Financial Statements)

Members

1990

2000

2015

Senior

652

551

413

Sr 65+

80

89

140

Sr 70+

115

115

146

Total

847

755

699

$ 477,652

$ 411,509

$ 335,144

$ (66,143)

$ (76,365)
$ (142,508)

Rev Equivalence
In 2015 Fees

Difference

Hudson Yacht Club Inc.

Revenue Implications

Current Fee Structure

SR.
ASSOC.
SR.65
ASSOC. 65
SR. 70
ASSOC. 70
INTER.
JR.
JUV.
NON-RES.

Members
(2015-01-20)
415
363
138
68
160
56
67
289
97
99

Discount
% off Senior Fee
0%
65%
65%
70%
77%
77%
60%
80%
90%
70%

Fees
$676
$237
$237
$203
$156
$156
$270
$135
$68
$203

Hudson Yacht Club Inc.

Category

 Pointe Claire 50% Discount for Elders 70+

with 10 years membership
Royal St. Lawrence- 25% Discount for 65+ with
10 years membership. A 70+20 year discount of
33% is being grandfathered out.
Royal Montreal Golf Club increased their Senior
category for 75+20 to 75+30 and Honorary from
80+25 to 80+35 in 2005
Canadian Old Age Security is increasing from 65
to 67 over 6 years starting in 2023.

Hudson Yacht Club Inc.

Benchmarking Comparisons

Benchmarking Comparisons
Cost for Senior Membership 2014
PCYC

RSTLYC

Senior

652

988

1,895

Initiation

1,925

1,200

1,000

Sr 65+10yrs
Sr 65 Assoc

$
$
$

228
196
424

$
$
$

988
494
1,482

Sr 70/30
Sr Assoc 70/30

$
$
$

151
151
302

$
$
$

494
494
988

1,420
included
$
1,420

Hudson Yacht Club Inc.

HYC

1,420
included
$
1,420

10

Our Senior Discounts are high- 70+ category is less than a third of PCYCs
Note: PCYC Elder category is 70 plus 10 years

Benchmark Comparisons
Costs for a family of four 2014
Sr
Sr Assoc
2 x kids
(10 + 12)

PCYC

RSTLYC

$
$
$

652
228
260

$
$
$

988
494
198

1,895

210

1,140

1,680

2,105

Entrance / Initiation

1,925

1,200

1,000

Year 1 cost
Year 2
Year 3
Year 4
Year 5
Total 5 year cost

$
$
$
$
$
$

3,065
1,140
1,140
1,140
1,140
7,625

$
$
$
$
$
$

2,880
1,680
1,680
1,680
1,680
9,600

$
$
$
$
$
$

3,105
2,105
2,105
2,105
2,105
11,525

Our initiation is high but overall costs are reasonable

Hudson Yacht Club Inc.

HYC

11

 The current fees are not sustainable given changing

demographics-20% fewer Senior members under 65 in
10 years
Only 9% of our senior members are under age 39; we
need to attract younger members
Changes such as eliminating a discount or category are
likely too disruptive, grandfathering would be required
We need an approach that will provide a more equitable
distribution while still offering attractive discounts
The approach should also allow us to introduce a new
discount to help attract younger members

Hudson Yacht Club Inc.

Summary & Next Steps

12