Tiburon Peninsula Club

2011 YEAR END FINANCIAL REVIEW

All Committees Meeting – February 7, 2012

Executive Summary

Congratulations on a stellar year

Your efforts are truly appreciated

Let’s do this again in 2012!

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2011 UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY MONTH

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Operations / PRE-BONUS

About ½ of last year, but a more representative # of future expectations

Difficult to budget for (we had a $140,000 delta y/y)

Cap Ex should average around $250,000/year

2011 Annual P&L Results by Unitand a 5-Year Comparison

Note: Any year-end profits are returned to the respective business unitsfor equipment upgrades and to pay bonuses. There is no carry forward.

and how far we’ve come…

We owe Jerry, Mike and crew ahuge thank you for righting the ship!

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Again, these are pre-bonus results.

2012 initiation fees will be deposited here first, and then into Funds “C” and “D”.

TPC Cash and Reserve Balances(as of December 31, 2011 and pro forma)

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Funds drawn down to close First Republic Loan and for pre-payment penalties to Bank of Marin.

Total Cash and Reserves (as of Feb. 1, 2012) = ~$1.5 million

2011 Membership Review and A Look at What’s Ahead

As of December 31, 2011:

Regular Members = 690Senior Members = 175Total Members = 865

Annual Dues = $1,837,753

As of January 31, 2012:

Regular Members = 700 Senior Members = 175 Total Members = 875

Annual Dues (est.) = $1,944,700

Annual Dues Increase Y/Y = $100,000

10 new members admitted in January 2012.Conditional Use Permit allows for a total of 700Regular Members. We are at the limit.

We currently budget for 35 new Regular Members annually (5% turnover) – from both resignations and Senior Member conversions. If our estimate is correct, we will generate approximately $525,000 for the Club’s capital expenditures (split roughly 40% for replacement/maintenance and 60% for new projects). Already have 10 new members in 2012. For reference, in 2011 we had 30 Regular Membership resignations, 6 Senior

conversions, 8 inactives/leaves of absence and 28 new members (~$500k in initiation fees).

There is currently an in-town waiting list of 22 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850).5

The dues increase will help offset increased costs of insurance, utilities and labor

Summary of 2011 Capital Expendituresand Roadmap for 2012

2012 – Projects Approved by BOGTennis (resurfacing, leveling, windscreens): $64,700Food & Beverage-related enhancements: $10,000

2011 Cap Ex SummaryClubhouse (largely café improvements): $88,000Aquatics (concrete and starting blocks): $20,000Locker Rooms (flooring and carpets): $28,000Fitness (painting): $3,500Administration (computers): $14,000Grounds (fencing, playground, lighting): $79,000

2012 – Projects Currently Under Consideration ($ estimates)Front Desk Reconfiguration: $30,000Tennis (lower court fences): $55,000Outdoor Café Trellis Cover: ?Youth Tennis Center Project: ?Main Pool Refurbishment: ?

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Terms of our Construction Loan Refinancing with First Republic(and what it means for the TPC)

1 – Loan Amount: reduced from $5,620,000 down to $4,500,000.

2 - Interest Rate: reduced from 6.25% down to 5.35%.

3 - Amortization: reduced from 30 years down to 15 years.

4 - Monthly Nut: roughly equivalent (~$36,000/month)

5 - Prepay Penalty: None

LOAN COMPARISON FACTS:

WHAT THE NEW LOAN MEANS TO THE TPC:

1 - FOR THIS LOAN, WE WILL BE DEBT-FREE IN 15-YEARS – PERHAPS SOONER.

2 - SAVINGS OF MORE THAN $2,000,000 IN INTEREST PAYMENTS.

3 - WE HAVE GAINED A COMMITTED PARTNER IN FIRST REPUBLIC BANK.- Lead sponsor for TPC Challenger

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Initiation Fees Dues Non-Member Surcharges

Revenues

Expenses

Aquatics

Fitness

Food/Bev

Tennis

Youth

Activity Specific Member Charges

Non-Member Activity Charges

Activity Fee

Activities – Set at Operational Breakeven

Monthly Debt Retirement Fees

Mortgage

Personnel/Operations- Aqua

Personnel/Operations - Fit

Personnel /Operations– F/B

Persn/Ops - Tennis

Persn/Ops - Youth

TPC Comprehensive Financial Model

20%

80%

Administration

Facility Operations

“A” - Operating Cash/Checking Acct

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“C” - Capital Reserve“Replacement”

$250,000/yr

“B” - Emergency Reserve Savings Account

Half of Year End

Balance

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“D” - Capital Expense (New)

Capital Expenses

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