MAY ‘11 Phone 07 5445 1104 | Wet Weather 07 5476 9154 | buderimbowls.com.au
New greens to commence in July The Management Committee have accepted the recommendation from our Finance Committee to proceed with a written submission provided by BankWest (a subsidiary of the Commonwealth Bank) for funding of the new greens. This submission is considered to be the most favourable received from those approached, including the Bank of Queensland and the Commonwealth Bank, by offering a competitive interest rate and flexibility of draw down on the loan by using surplus Club funds to reduce our interest expense. The recommendation is to borrow $250,000 over five years at a variable interest rate with the option to change to a fixed rate at a later time should the circumstances warrant such a change. The Club will firstly use its surplus funds up to a maximum of $200,000 then draw down the loan funds as required. The use of Club funds to this level was approved by Club Members at the Special General Meeting held last year.
The loan repayments will be between $5000 and $5100 per month - the actual amount being fixed when the contract documentation is finalized. The total yearly repayments of the loan will be covered by savings identified in the original proposal for greens funding and presented to Club Members. Once the loan has been repaid after 5 years, the Club will continue to pay an amount of $5000 per month into a high yielding bank deposit account to ensure there is sufficient cash available for green surface replacement in the future. It is expected that replacement of the green's surface could be required after approximately 10 years of use. With the commencement of work on the front green due to occur on the 11th of July, all is now in place for the project to proceed according to our plans. Completion of both greens is expected by late August depending on favourable weather conditions.
Email: buderimbowls@bigpond.com.au | blbc@bigpond.com