As outgoing President of the board, I thought it might be helpful for many of you to see this report which was presented at the October annual meeting. 

The club is in very good shape financially and below are some of the highlights. 

· Three years of triple digit revenue growth dramatically outpacing expense growth

· Substantial cash flow generation placing the club in a position to build reserves for future improvements and pay off debt in a timely manner.  For example, the improvements to the pool were paid for with existing cash rather than financing as originally planned. 

· For 2009, our member attrition rate was lower than 2008.  Considering the state of the economy, this is very significant. 

· While other local clubs no longer have wait lists and are losing members due to the economic downturn, the Meadows club has not lost members and has a 9.5 year wait list up from 100 families in 2006 to 236 families today.

· Our expenses have been managed very carefully and for the second year in a row are coming in below budget.

These continued positive results are a direct result of the Board’s strategy of investing in the club, our General Manager, Kjerston Buzek’s ability to carefully manage expenses, and over three decades of hard work through member’s efforts.  This has paid off in terms of high existing member satisfaction and the continued popularity of the club in the community.  For more financial details, please review the latest financial statements for the club on the Meadows Club website. 

There have been a few key changes to the club over the last three years as the board focused on improving the club for the benefit of all members. 

• The club spent $200K on pool upgrades and repairs for a new deck and shell.  The feedback on the pool and new open grass areas around the pool has been very positive. 

• A platform tennis court was added and plans are in place to light these courts in the next phase of improvements.  Although the location is not what was originally intended, member feedback suggests that it is the best alternative. 

• Two new clay surface tennis courts were added last spring for everyone to enjoy.  It’s new and different which can be a challenge for many folks, but most members view playing on them as an opportunity to improve and extend playing careers.   

• The membership approved covering 3 tennis courts for year round indoor use.  Due to the dramatic changes in the economy, the board felt it was prudent to slow the project down and evaluate the impacts on the club.  Recent economic data and club finances are trending positively and the club is moving forward with this part of the project.  Finalizing financing and our building permit with the city still remain to be completed before construction.  There are several banks interested in financing the project and the club has begun negotiating terms.  The committee has been working with the city of Boulder on obtaining the building permit.  Currently the committee is going through iterations of building design details with the city and hopes to have more information to share with the membership soon.

I know this update is disappointing for many of our members who would like to use the club year round right now.  As the economy improves, please be assured that the capital improvements committee will continue to work on this project through its completion.

I’d like to recognize the two board members whose terms are expiring this year, Audrey Irwin and Dee Perry.  Both have put into countless hours into the club over the last 2.5 and 3 years respectively they served on the board.  

Many of you may not be aware of this but Audrey was responsible for installing the internet at the Meadows club in 2007.  Since most of us have had internet service for well over a decade it’s hard to believe that this was not an easy task.  Audrey had to overcome many logistical obstacles to deliver email and internet for the club members.   This significant advance for the club allowed for more effective communication and member feedback through the first time use of online surveys.  Audrey also spearheaded the swim committee and all the changes that took place including hiring new coaches and implementing scoring software for the swim team. 

Audrey left the board earlier this year and was replaced by Kirk Jamison who has done outstanding work and analysis for the club as the board looks toward the future.  Over the last six months Kirk has become an incredible asset for the board.

Dee Perry, a former CFO, has been the financial expert for the Meadows Club.   Under Dee’s guidance and with the help of Karin Kearney, the club is now using accounting software with a redesigned chart of accounts that accurately tracks spending for the club.  This gives the GM and Board the tools to more effectively manage the club.  She has also worked many, many hours developing the financial projections that are critical for the club to accurately budget and execute the capital improvements approved by the members. 

We all want things to happen in our communities.  It takes something special to actually get out and do something to make things happen.  Audrey and Dee are “doers” and the kind of people that make our club very special.   Please tell Audrey and Dee how much you appreciate their hard work the next time you see them.

I’d like to recognize Kjersten for her high standards, efforts, and fair mindedness to make the club as fun as possible for all the members.   For the first time, the United States Department of Commerce recognized the Meadows Club as the best private swim club in Boulder.  This was determined by an outside third party and would not have happened without Kjersten’s hard work and leadership of the club.    Please express your appreciation to Kjersten the next time you see her at the club. 

Lastly I’d like to say thanks to all the members for supporting the board and the management of the club.   For me personally, I’ve really enjoyed getting to know many more of you on a personal and professional level.  There are terrific people here at the club and it’s been a real pleasure serving on the Meadows Club board over the last three years.

I look forward to seeing everyone at the club,

Richard Leddon