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Kelowna  

Yacht club sinking in red ink

The Kelowna Yacht Club is swimming in red ink. 

Members have been told the club could lose as much as $560,000 in 2017.

In an information package obtained by Castanet News, members were told the club lost $176,000 as of the end of July, with losses at the end of the fiscal year Oct. 31 projected to hit $561,000, "unless corrective measures are taken."

Several reasons have been cited, including a new building which is more costly to operate and maintain than anticipated.

"Significant capital has been expended in correcting design flaws, defective materials and a very dysfunctional kitchen," members were told.

The memo further stated the current funding model will not provide for long-term financial stability, emergency conditions or establishment of a strategic reserve.

Labour costs also far exceeded what was budgeted. From March through July, the labour overrun was more than $175,000.

Flooding in the spring, followed by fires and smoke during the summer also contributed to revenue losses.

Several actions have already been taken to get the club's financial house back in order.

The yacht club's general manager was let go at the beginning of September. Staff cuts also began last week, while the member's lounge will see a reduction in operating hours.

Members will also be asked to help cover the shortfall out of their own pocket. Each of the 1,627 members will be asked to pony up $350 as a one-time payment to help cover the 2017 losses. That would amount to $569,000.

Changes to the fee structure are also being proposed for 2018, as is a reduced footprint for the member lounge and a simplified food menu.

The $350 payment and fee changes for next year will be voted on by the membership at a special meeting next week.



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