Cash Flow History and Base 2015 Budget

2008 2009 2010 2011 2012 2013 2014 2015 Actual Actual Actual Actual Actual Actual Fcst Budget

Equity membership dues $ 108 $ 113 $ 103 $ 107 $ 112 $ 105 $ 98 $ 118 Non-Equity membership dues 12 10 13 15 7 13 11 17 Other revenues 17 14 20 24 19 18 15 16 Total revenues 137 137 136 146 138 136 124 151

Pool management/payroll 63 58 58 58 59 59 59 65 Insurance 16 15 9 11 12 13 13 13 Utilities 17 16 19 17 17 19 21 22 Swim/Dive team coach fees 10 10 11 11 11 11 11 11 Repairs & maintenance 24 20 8 14 14 13 9 11 Other 27 15 18 21 21 15 19 21 Total expenses 157 134 123 132 134 130 132 143

Net operating cash flow before debt service (20) 3 13 14 4 6 (8) 8 Mortgage payment - - - (3) (8) (8) (8) (8) Mortgage proceeds less pool renovation costs - - - 1 - - - - Net bond deposits (refunds) 2 2 (10) (2) (15) 1 13 3 Net cash flow (18) 5 3 10 (19) (1) (3) 3

Beginning cash 45 27 32 35 45 26 25 22 Ending cash $ 27 $ 32 $ 35 $ 45 $ 26 $ 25 $ 22 $ 25

Ending loan balance $ - $ - $ - $ 55 $ 50 $ 45 $ 39 $ 33

Assumes No Pool Renovation or Capital Assessments

Base 2015 Budget Assumptions

Minimum Cash Flow Requirement Cash flow before bond deposit/refunds must equal $8 annual mortgage payments

Membership Assumptions Permanent Family Memberships

Increase from 210 to 220 Increase in annual dues from $485 to $515 Increase in board member dues from $243 to $515 No 20% discount for early bird new members

Permanent Empty Nest Memberships Unchanged at 17 Increase in annual dues from $250 to $275

Summer Only Family Membership Increase from 18 to 20 Increase in annual dues from $600 to $640

Summer Only Empty Nest Membership Remain unchanged at 9 Increase in annual dues from $325 to $370

Pool Management Fee 11% increase from $59.0K to $65.8K due primarily to minimum wage increase

Assumes No Pool Renovation or Capital Assessments

Historical Membership Decline

Forecast Actual Actual Actual Actual Actual Actual Actual Actual Actual

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Family Membership 210 226 239 231 223 248 Open 261 277 281

Empty Nest Membership 17 13 10 4 - - - - - -

Total 227 239 249 235 223 248 Open 261 277 281

Family Membership $ 485 $ 485 $ 485 $ 480 $ 480 $ 480 Open Open Open Open

Empty Nest Membership $ 250 $ 243 $ 243 $ 240 N/A N/A N/A N/A N/A N/A

• Long-Term Trend in Reduction in Membership• Permanent Membership Decline from 281 in 2005 to 227 in 2014• The following is a Summary of Permanent Memberships since 2005

2008 membership is open 2005 to 2008 annual dues is open although suspect that it was significantly lower than

2009 and forward

Minimum Wage Increase

• Federal Minimum Wage is Currently $7.25 per hour• Montgomery County Minimum Wage Increase• $8.40 per hour starting 10/1/14• $9.55 per hour starting 10/1/15• $10.75 per hour starting 10/1/16• $11.50 per hour starting 10/1/17• Exemption for employees under 19 who work less than 20 hours per week

• Increase is 16% for 2015 pool season while US Aquatics management fee increase is 11%• Increase is 59% by 2018 pool season• Unsure of how much increase in US Aquatics management fee will be

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Equity membership dues $ 98 $ 129 $ 131 $ 134 $ 137 $ 140 $ 142 $ 145 $ 148 $ 151 $ 154 Non-Equity membership dues 11 18 19 19 20 20 20 21 21 22 22 Other revenues 15 16 17 17 17 18 18 18 19 19 20

Total revenues 124 164 167 170 174 177 181 184 188 192 196

Pool management/payroll 59 66 67 68 70 71 73 74 76 77 79 Insurance 13 13 13 14 14 14 14 15 15 15 16 Utilities 21 22 22 23 23 23 24 24 25 25 26 Swim/Dive team coach fees 11 11 11 12 12 12 12 13 13 13 13 Repairs & maintenance 9 11 11 11 11 12 12 12 12 13 13 Other 19 22 22 22 23 23 24 24 25 25 26

Total expenses 132 144 147 150 153 156 159 162 165 169 172 Net operating cash flow before debt service (8) 20 20 21 21 21 22 22 23 23 24 Pool Renovation - (125) - - (35) - - (10) - - (35) Pool Financing - 125 - - - - - - - - - Mortgage payment (8) (25) (25) (25) (25) (25) (25) (25) (25) (25) (25) Capital Assessment - 31 32 33 30 - - - - - - Net bond deposits (refunds) 13 3 - - - - - - - - - Net cash flow (3) 29 27 29 (10) (4) (3) (13) (2) (2) (36)

Beginning cash 26 23 52 79 108 98 94 91 78 76 74 Ending cash $ 23 $ 52 $ 79 $ 108 $ 98 $ 94 $ 91 $ 78 $ 76 $ 74 $ 38

Ending loan balance $ 39 $ 152 $ 135 $ 118 $ 99 $ 80 $ 61 $ 47 $ 32 $ 17 $ 0

Ten Year Forecast For RemodelingAssumes Pool Renovation in 2015

Ten Year Forecast Assumptions

Membership Assumptions Permanent Family Memberships

Increase from 210 to 220 in 2015 and constant thereafter Increase in annual dues from $485 to $560 in 2015 Increase in board member dues from $243 to $560 in 2015 No 20% discount for early bird new members

Permanent Empty Nest Memberships Unchanged at 17 Increase in annual dues from $250 to $335

Summer Only Family Membership Increase from 18 to 20 Increase in annual dues from $600 to $710

Summer Only Empty Nest Membership Remain unchanged at 9 Increase in annual dues from $325 to $410

2% Annual Growth Assumption in Dues and Expenses Starting in 2016 Pool Management Fee Does not Grow by More than 2% in 2016 and thereafter

Substantial increase in pool management that mirror minimum wage increase will dramatically increase membership annual dues assumptions

Assumes Pool Renovation in 2015

Ten Year Forecast Assumptions

Member Capital Assessments $170 per year for three years and $150 for fourth year

Total of $125,000 over four year period No capital assessment for first two years of new members

Loan Financing $128,000 Debt Financing 6% Interest Rate Ten Year Amortization $3,000 in Closing Costs

• Future Pool Whitecoat• Wading and Dive Pools in 2018• Main Pool in 2024

Assumes Pool Renovation in 2015